When People Commit the Base-Rate Fallacy,they Often

question 21

Multiple Choice

When people commit the base-rate fallacy,they often

• A)rely too heavily on the availability heuristic.
• B)believe that the conjunction of two events is more likely than either event by itself.
• C)pay too little attention to information about relative frequency.
• D)are especially likely to demonstrate the hindsight bias.

---

Definitions:

Accounts Receivable

Amounts due from customers to an enterprise for delivered but unpaid goods or services.

Fire Insurance

A type of property insurance that covers damage and losses caused by fire.

Bonds Outstanding

The total amount of bonds issued by a corporation or government that have not yet been repaid.

Fixed Assets

Long-term tangible property owned by a business that is used in its operations and is not expected to be consumed or converted into cash within a year.