Heuristics Are Relevant When We Try to Answer a Reasoning

question 43

Multiple Choice

Heuristics are relevant when we try to answer a reasoning problem because

• A)we carefully assess the logic behind each reasoning problem,rather than responding quickly.
• B)we often answer a reasoning problem by using a heuristic that a conclusion is a "good bet," even if it is not always true.
• C)we are especially accurate on reasoning problems that involve "affirming the consequent."
• D)we are significantly more accurate if we try decision-making strategies in trying to solve reasoning problems.

---

Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity. It's a key indicator of financial health for any business.

Terminal Value

The estimated value of a business or project beyond the explicit forecast period.

Annualized Rate of Return

The annualized rate of return is a way of calculating investment returns on an annual basis, taking into account the effect of compounding over the period.

Treasury Bill

Short-term government securities with maturity periods of one year or less, issued at a discount to their face value.