According to the Text,we Often Fall Prey to Correspondence Bias

question 27

Multiple Choice

According to the text,we often fall prey to correspondence bias because

• A)the actor's situation is invisible to us,while the actor's behavior is obvious.
• B)although there are taxonomies of people,there are no taxonomies of situations.
• C)understanding current behavior is of no help in predicting future behavior.
• D)we seldom if ever have consensus information.

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Definitions:

Independent Projects

Investment projects whose cash flows are not affected by the acceptance or rejection of other projects.

Discounted Payback

A method in capital budgeting that determines the amount of time needed to recover the initial investment, accounting for the present value.

Payback Method

An approach within capital budgeting that determines how long it takes to regain the initial outlay for an investment.

Mutually Exclusive

This term describes options or decisions that cannot occur simultaneously; choosing one means forgoing the others.