Examlex
Assume this is your first day on the job as the new chief financial officer of a midsize company.Identify the three key ratios that you would compute first as you begin to try to understand the financial status of the firm.Explain why you selected the three ratios that you did.
Confirmation Bias
The inclination to seek out, understand, prefer, and remember information in a manner that validates one's existing beliefs or theories.
Cognitive Error
Faulty thinking patterns that lead to misinterpretation of experiences or interactions.
Illusory Correlation
The cognitive mistake of perceiving a relationship between two variables even when none exists.
Confirmation Bias
The tendency to search for, interpret, and remember information in a way that confirms one’s preconceptions or hypotheses.
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