Exhibit 12-3 You Are Given the Following Information About Y and X

question 43

Multiple Choice

Exhibit 12-3
You are given the following information about y and x.

-Refer to Exhibit 12-3. The least squares estimate of b₀ equals

• A)1
• B)-1
• C)-11
• D)11

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Definitions:

Confirmation Bias

The habit of looking for, comprehending, selecting, and reminiscing about information that validates an individual's prior convictions or theories.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, also known as the "knew-it-all-along" effect.

Timing Bias

A form of cognitive bias where an individual's decisions or perceptions are influenced by the timing of information or events.

Base Rate Neglect

The tendency to ignore information about general principles in favor of very specific but vivid information.