Daniel Started Watching a Movie That Was Half Over

question 100

Multiple Choice

Daniel started watching a movie that was half over.He thought the male lead in the movie was a private detective; however,the lead character was actually a medical doctor.Later,when Daniel is discussing the movie with his friends,he remembers the character's beat-up old car and the fact he ate a lot of fast food.His friends focus more on the character's logical assessment of the facts involved in the case.What might these differences in memory result from

• A) an actor-observer bias 
• B) the fundamental attribution error 
• C) the matching hypothesis 
• D) confirmation biases

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Definitions:

Acquisition Cost

The total cost that a company recognizes on its financial statements for acquiring an asset or taking over another business.

Time Value of Money

The principle that a certain amount of money today is worth more than the same amount in the future due to its potential earning capacity.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows, reflecting the time value of money and risk.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.