Which of the Following Reflects the Illusory Correlation Effect

question 193

Multiple Choice

Which of the following reflects the illusory correlation effect?

• A)We see correlations between social traits that really aren't there, because our expectations distort our memories.
• B)We fail to see true correlations between social traits, because our expectations distort our memories.
• C)We are motivated to accurately estimate the frequency with which some pattern of social traits occurs.
• D)We incorrectly assume that one social trait is the cause of another, simply because we have observed that they are correlated.

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Definitions:

Rental Offset

A financial mechanism where rental income is used to offset or reduce mortgage payments, expenses, or other financial obligations related to the rental property.

Passive

Referring to income generated from activities in which the individual is not actively involved, often subject to different tax rules.

Recourse Liabilities

Debts for which the borrower is personally liable, meaning creditors can pursue the borrower's other assets if the collateral does not cover the debt.

Nonrecourse Liabilities

Nonrecourse liabilities are obligations where the lender's recovery options in case of default are limited to the collateral securing the loan, not the borrower's other assets.