Psychologists Have Published an Article Which Shows That Many U

question 77

Multiple Choice

Psychologists have published an article which shows that many U.S.residents avoided flying in airplanes after the 2001 terrorist attacks.In fact,for several months afterwards,many people decided to drive,rather than fly.This phenomenon can best be explained by

• A)the influence of recency on availability.
• B)the conjunction fallacy.
• C)the illusory correlation effect.
• D)too much emphasis on the likelihood ratio.

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Definitions:

Carrying Amount

The amount at which an asset or liability is recognized on the balance sheet after deducting any accumulated depreciation, amortization, or impairment.

Fair Value

An estimate of the price at which an asset or liability would be traded between knowledgeable, willing parties in an arm's length transaction.

Costs To Sell

The direct costs attributable to the disposition of an asset, excluding finance costs and income taxes.

Impairment Loss

A charge to the income statement that occurs when the carrying amount of an asset exceeds its recoverable amount, indicating the asset is not expected to generate future economic benefits.