Use the Figure for the Question(s) Below

question 34

Multiple Choice

Use the figure for the question(s) below.
-Which of the following statements regarding timelines is false?

• A) Timelines are an important first step in organizing and then solving a financial problem.
• B) We refer to a series of cash flows lasting several periods as a stream of cash flows.
• C) Not every stream of cash flows can be represented on a timeline.
• D) A timeline is a linear representation of the timing of the (expected) cash flows.

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Definitions:

Hindsight Bias

The inclination to see events as having been predictable, after they have already occurred.

Confirmation Bias

The inclination to seek out, understand, prefer, and remember data in a manner that affirms someone's already held beliefs or assumptions.

Selection Bias

A statistical bias in which there is an error in choosing the individuals or groups to participate in a study, leading to results that are not representative of the broader population.

Intervention Bias

The tendency to intervene in situations where intervention may not be necessary or could lead to negative outcomes.