People Are Most Likely to Be Overconfident in the Accuracy

question 44

Multiple Choice

People are most likely to be overconfident in the accuracy of their predictions when predicting

• A) events that are virtually certain to occur.
• B) changes in the weather.
• C) the accomplishments of other people.
• D) their own accomplishments.

---

Definitions:

Sales Revenues

The total amount generated from selling goods or services before any expenses are subtracted.

Cash Operating Costs

The expenses a company incurs during its normal business operations that require cash payments, such as rent, utilities, and payroll.

Annual Depreciation

The portion of the cost of a fixed asset that is allocated as an expense in each accounting period during its useful life.

Simple Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the annual incremental net operating income divided by the initial investment cost.