Students Were Amazed When Professor Diaz Walked into Class on the First

question 342

Multiple Choice

Students were amazed when Professor Diaz walked into class on the first day of the semester and correctly "sensed" that two people in his class of 23 were born on the same day. The tendency to think that it is very unlikely that two people in a class of 23 could share the same birthday is an example of the:

• A) belief-bias effect.
• B) confirmation bias.
• C) fallacy of positive instances.
• D) overestimation effect.

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Definitions:

Life Insurance

A financial product that provides a payout to the beneficiaries upon the death of the insured.

Drug Test

A drug test is a technical analysis of a biological specimen that's used to detect the presence or absence of specified parent drugs or their metabolites.

Moral Hazard

Moral hazard occurs when there is a lack of incentive to guard against risk where one is protected from its consequences, often after entering into a contract or agreement.

Deductible

The amount paid out of pocket by the policyholder before an insurance company covers a claim.