When People Use the Representative Heuristic to Judge the Probability

question 82

True/False

When people use the representative heuristic to judge the probability of an event,they tend to ignore information about the base-rate occurrence of the event.

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Definitions:

Sales

The transactions involving the exchange of goods or services for money, forming the revenue of a company.

Units

Units refer to the individual components or elements that can be counted or measured, often used in the context of production, sales, and inventory.

Margin Of Safety

The difference between actual sales and break-even sales, indicating how much sales can fall before a business incurs a loss.

Break-Even Sales

The amount of revenue required to cover both the fixed and variable costs of production.