The Prediction That People Estimate Frequency or Probability by the Ease

question 9

Multiple Choice

The prediction that people estimate frequency or probability by the ease with which instances or occurrences of the event can be brought to mind is known as the ________.

• A)heuristic bias
• B)availability heuristic
• C)representative heuristic
• D)halo effect

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Definitions:

Adjusted Gross Income

An individual's total gross income minus specific deductions, used to determine taxable income on an income tax return.

FMV

Fair Market Value, which is the price that an asset would sell for on the open market between a willing buyer and a willing seller.

Basis

The amount invested in a property for tax purposes, typically the cost of the property which is used to figure gain or loss on sale.

Taxable Gain

The portion of income or profit on which taxes must be paid, often related to investments or capital assets.