The Tendency for People to Judge the Frequency or Likelihood

question 68

Multiple Choice

The tendency for people to judge the frequency or likelihood of an event by the ease with which they can imagine or mentally visualize it is known as the ____.

• A)representativeness heuristic
• B)anchoring and adjustment heuristic
• C)simulation heuristic
• D)confirmation bias

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Definitions:

Operating Cash Flow

Operating Cash Flow refers to the cash generated from a company’s normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Long-term Solvency

A measure of a company's ability to meet its long-term financial obligations, indicating its financial health and stability over time.

Interest Coverage

A financial metric used to determine how easily a company can pay interest expenses on outstanding debt with its before-tax income.

Quick Ratios

A liquidity metric that measures a company's ability to cover its current liabilities with its most liquid assets, excluding inventory.