An Expectation May Fail to Be Rational If

question 7

Multiple Choice

An expectation may fail to be rational if

• A)relevant information was not available at the time the forecast is made.
• B)relevant information is available but ignored at the time the forecast is made.
• C)information changes after the forecast is made.
• D)information was available to insiders only.

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Definitions:

Observer Bias

The tendency for observers to see, report, or record what they expect to see, rather than what is actually happening, due to preconceived notions or beliefs.

Survey Method

A research technique used to gather data through questionnaires or interviews from a sample of individuals.

Case Study

A research method that involves an in-depth analysis of a single individual, group, event, or situation to explore causation in order to find underlying principles.

Single-blind Study

A study design where the participants do not know which group (experimental or control) they are in to prevent bias, but the researchers do.