Evolutionary Theorists Argue That If Decision Problems Were Stated in Terms

question 81

Multiple Choice

Evolutionary theorists argue that if decision problems were stated in terms of raw frequencies,then

• A) base rate neglect and the conjunction fallacy would both disappear.
• B) base rate neglect and the conjunction fallacy would both become more pronounced.
• C) base rate neglect would disappear, but the conjunction fallacy would become more pronounced.
• D) base rate neglect would become more pronounced, but the conjunction fallacy would disappear.

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Definitions:

Budgeting

A process of creating a plan to spend your money, outlining projected income and expenses over a period.

Spending Variances

The difference between the actual amount spent and the budgeted amount for a particular accounting category.

Favorable

A term used in finance and accounting indicating that actual performance is better than the expected or budgeted performance.

Unfavorable

A term used in budgeting and accounting to describe a financial condition or variance that is worse than expected or budgeted.