Many People Have Heard That the Stock Market Rises When

question 74

Multiple Choice

Many people have heard that the stock market rises when a team from the National Football Conference (NFC) wins the Super Bowl, and falls when a team from the American Football Conference (AFC) is victorious.If you conclude that there is a causal relationship between the outcome of the Super Bowl and stock prices, you probably are:

• A)confusing correlation with causation.
• B)violating the ceteris paribus assumption.
• C)committing the fallacy of composition.
• D)confusing the direction of causality, since everyone knows that stock prices determine which team wins the Super Bowl.

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Definitions:

Psychological Payoff

The benefit, often unconscious, that individuals derive from maintaining certain behaviors or psychological states.

Transactional Analysis

A psychoanalytic theory and method of therapy wherein social transactions are analyzed to determine the ego state of the communicator as a basis for understanding behavior.

Transaction

An instance of buying or selling something; in psychology, it can also refer to an interaction or exchange between people.

Strokes

A term used in psychology to describe a unit of recognition or attention that one person gives another, often used in transactional analysis.