________________ Is the Search for Evidence That Only Supports a Preexisting

question 50

Multiple Choice

________________ is the search for evidence that only supports a preexisting belief, whereas ______________ involves accepting preexisting evidence, only if it confirms a belief.

• A) Confirmation bias; belief perseverance
• B) Belief perseverance; confirmation bias
• C) The availability heuristic; the representativeness heuristic
• D) The representativeness heuristic; the availability heuristic

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Definitions:

Zero-Balance Account

A bank account which maintains a balance of zero by automatically transferring funds from a master account in an amount only large enough to cover checks presented.

BAT Model

A behavioral approach to financial modeling that incorporates psychological factors into market predictions.

Miller-Orr Model

A financial model used to manage cash balances and optimize the level of cash holdings by setting upper and lower limits within which the balance can fluctuate before triggering a transfer of funds.

Cash Balance

The amount of cash a company has on hand, which includes currency, coins, and balances in checking and savings accounts.