Someone Sees a Strange-Looking Flying Object

question 133

Multiple Choice

Someone sees a strange-looking flying object. It might be a white pelican, or it might be a UFO from outer space. The viewer decides that it is a UFO. Assuming that it really was a pelican, which mistake of reasoning has the viewer made?

• A) failure to use the availability heuristic
• B) failure to use the representativeness heuristic
• C) failure to consider base-rate information
• D) failure to use a cognitive map

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Definitions:

Economically Equivalent

Economically equivalent means having the same financial value or cost, despite possibly differing in form or method.

Missing Value

An absent or unrecorded piece of data in a dataset or equation.

Scheduled Payments

Regular fixed payments made over a period according to a repayment plan, typically for loans or mortgages.

Time Value

The idea that having money now is more valuable than having the same sum later because of the possible earnings it can generate over time.