Which Statement Is NOT True of Gluck and Bower's (1988)study

question 30

Multiple Choice

Which statement is NOT true of Gluck and Bower's (1988) study on Bayesian behavior?

• A) The proportion of the participants' choices was very close to the true probabilities.
• B) Participants consistently overestimated the frequency of the rare disease.
• C) Their judgments show no influence of base rate.
• D) Participants implicitly used Bayesian behavior.

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Definitions:

Planning Budget

A budget established at the beginning of a planning period, reflecting the expected income and expenditures.

Revenue and Spending Variance

The difference between the expected (budgeted) and actual amounts of revenue and expenses.

Flexible Budget Performance Report

A financial report that compares actual operating results to budgeted amounts adjusted for actual activity levels.

Activity Variance

The difference between the planned budget of an activity and the actual expenses incurred.