If an Individual Tends to Overestimate the Degree to Which

question 21

Multiple Choice

If an individual tends to overestimate the degree to which he/she would have predicted the correct outcome, he/she exhibits:

• A) hindsight bias
• B) illusory correlation
• C) false consensus
• D) overconfidence

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Definitions:

Payment Schemes

Systems or methods used to transfer money between entities, often involving structured processes and standards for executing transactions.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Exercise Equipment

Tools and machines designed for physical activities that improve fitness, such as treadmills, weights, and stationary bikes, used in both home and commercial gyms.

Loan

Borrowed money that is expected to be paid back in the future under predetermined terms.