Megan Cannot Sleep at Night Because She Is Terribly Worried

question 7

Multiple Choice

Megan cannot sleep at night because she is terribly worried about being robbed, which is highly unlikely. As her friend, you want to help her by describing judgment errors and why she should not lose anymore sleep. Which concept is NOT contributing to her irrational fear?

• A) base rates for getting robbed
• B) availability heuristic for people getting robbed
• C) memory bias for extreme events
• D) sample size neglect for the number of robbers out there

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Definitions:

Controllable Costs

Costs that can be influenced or controlled by a specific manager or department within an organization.

Unfavorable Controllable Margin

A financial metric indicating that costs or expenses have exceeded budgeted amounts within a manager's control, negatively impacting profitability.

Cost Over Budget

The amount by which actual spending exceeds the planned or budgeted amount.

Sales Exceeding Budget

This indicates a financial scenario where actual sales revenue surpasses the projected figures in the budget, often viewed positively as it suggests higher profitability.