One of the Best Ways to Speed Up the Process

question 66

Multiple Choice

One of the best ways to speed up the process of financial analysis and arrive at a good decision is to

• A)use estimates of inputs when it appears that finding a very accurate input would take an inordinate amount of time.
• B)use estimates backed up by sensitivity analysis when it appears that finding a very accurate input would take an inordinate amount of time.
• C)use estimates of inputs except when it appears that finding a very accurate input would take an inordinate amount of time.
• D)make sure that every detail is very accurate.

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Definitions:

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how much one event resembles another.

Stereotypes

Oversimplified, generalized ideas about a group of people that often lead to prejudiced attitudes or behavior.

Phonemes

Phonemes are the smallest units of sound in a language that can distinguish one word from another, such as the distinction between the consonant sounds in "pad" and "bad."

Emotion

Complex psychological states involving thoughts, feelings, physiological changes, and behaviors.