According to the Discussion of the Availability Heuristic

question 57

Multiple Choice

According to the discussion of the availability heuristic,

• A)this heuristic is consistently more accurate than the representativeness heuristic.
• B)we use this heuristic when we try to estimate probability by thinking of relevant examples.
• C)this heuristic emphasizes that we ignore the conjunction fallacy.
• D)this heuristic explains why we typically provide confidence intervals that are too narrow.

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Definitions:

Operating Activities

Activities directly related to the core business functions of producing and delivering goods and services, which influence the cash flow from operations on a company's cash flow statement, highlighted by a secondary explanation emphasizing its financial impact.

Net Income

The amount of revenue that remains after subtracting all expenses, taxes, and costs from total revenue.

Nonoperating Items

Financial gains or losses arising from activities not related to a company's core business operations.

Direct Method

A cash flow statement preparation method that lists major classes of gross cash receipts and payments.