Which of the Following Is True About the Fundamental Attribution

question 3

Multiple Choice

Which of the following is true about the fundamental attribution error?

• A)It occurs when individuals react to arbitrary or irrelevant numbers when setting financial or other numerical targets.
• B)It occurs when information that is more handy is incorrectly assessed to also be more likely.
• C)It occurs when good outcomes are attributed to personal characteristics but undesirable outcomes are attributed to external circumstances.
• D)It occurs when mistakes seem obvious after they have already occurred.
• E)It occurs when individuals are more confident in their abilities to predict an event than logic suggests is actually possible.

---

Definitions:

NPV

Net Present Value; a calculation that compares the value of money now to the value of that money in the future, taking inflation and returns into account.

Static DCF Analysis

A method of valuing a project, company, or asset using the concepts of the time value of money where all cash flows are assumed to occur at fixed points in time.

Option to Expand

The option to expand is a strategic flexibility available to companies, allowing them to increase their investment in a project based on future market conditions or performance indicators.

Cash Break-even

The point where a business's cash inflows match its cash outflows, excluding non-cash expenses, indicating no net gain or loss.