The Representativeness Heuristic Is a Natural Tendency to Assign Higher

question 45

True/False

The representativeness heuristic is a natural tendency to assign higher probabilities to objects or events that are easier to recall from memory.

---

Definitions:

Compensation

Payment or reward given for services rendered, loss incurred, or for the performance of duties or responsibilities.

Board of Directors

A group of individuals elected by shareholders to make major decisions and oversee the management of a corporation.

Shares of Stock

Units of ownership in a corporation that represent a claim on a portion of the corporation's assets and earnings.

Transferable

Capable of being passed from one entity to another, either through sale, gift, or by operation of law, thereby changing ownership or rights.