Representativeness Heuristic Is Best Explained As

question 26

Multiple Choice

Representativeness heuristic is best explained as:

• A) the process of assuming events are random even when they are not.
• B) the creation of patterns in planned events.
• C) concluding that casual factors cause random events when in fact they do not.
• D) believing that random events that occur in clusters are truly random.
• E) overconfidence in one's own skills as an investor.

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Definitions:

Long-Term Mechanisms

Strategies or processes that are employed over an extended period to manage or cope with tasks, changes, or stresses.

Social Motive

The underlying psychological drive that influences individuals to seek social connections and interactions.

Need for Rest

A physiological and psychological requirement for periods of rest or sleep to recover from activity and maintain health.

Social Motives

Social motives are driving forces behind individuals' behaviors that stem from the need for social interaction, acceptance, and belonging within a group or society.