On Monday,the Meteorologist Forecast a 20 Percent Chance of Rain,so

question 189

Multiple Choice

On Monday,the meteorologist forecast a 20 percent chance of rain,so Sheryl took her umbrella to work.On Friday,he reported an 80 percent chance that it would not rain,so Sheryl left her umbrella at home.Sheryl's behavior illustrates the effect of

• A) confirmation bias.
• B) overconfidence.
• C) the availability heuristic.
• D) framing.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments, simplifying accounting computations.

Salvage Value

The projected sale proceeds of an asset at the conclusion of its period of utility.

Payback Period

The length of time it takes for an investment to generate enough cash flow to recoup its original cost.

Accounting Rate of Return

The accounting rate of return (ARR) is an accounting metric that measures the profitability of an investment by dividing the average annual profit by the initial investment cost.