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:

Standards

Established norms or criteria that define the expected quality, performance, or conduct in various contexts.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time or implementing significant improvements at once.

Statistical Quality Control

A set of statistical techniques used to measure and control the quality of a product or service, ensuring it meets specified requirements.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.