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umka21 [38]
4 years ago
11

When you use the availability heuristic, you are: mistaking visual images and other forms of mental representations for reality.

assuming that something is typical of its class. making frequency estimates based on the ease with which things come to mind. overcoming mental set?
Social Studies
1 answer:
leva [86]4 years ago
4 0
<span>When you use the availability heuristic, you are </span>basing your judgments on the extent to which an event matches your expectations 
When using availability heuristic, we will rely only on specific examples that are familiar to us. If this used in argument, our basic argument will only come across as subjective or biased.

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According to the standard debt-to-income ratio, the person who would be rated as highest in respect of eligibility for a home loan is person C.

<h3>What is a home loan?</h3>

A home loan is an amount that has been lent for the acquisition or purchase of any house. or apartment for living.

Given values:

<u>Persons    </u>             <u>   Monthly Incomes    </u>      <u> Recurring debts </u>

Person A                    $4,250 ($51,000 / 12)               $350

Person B                     $4,833 ($58,000 / 12)              $250

Person C                     $5,250 ($63,000 / 12)             $200

Person D                     $5,583 ($67,000 / 12)             $450

<u>Step-1 </u> Computation of debt-to-income ratio of person A:

\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\rm\ Recurring \rm\ debt}{\rm\ Income}\\ \rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\$350}{\$4,250}\\\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=8.23\%

<u>Step-2 </u>Computation of debt-to-income ratio of person B:

\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\rm\ Recurring \rm\ debt}{\rm\ Income}\\ \rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\$250}{\$4,833}\\\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=5.18\%

<u>Step-3 </u>Computation of debt-to-income ratio of person C:

\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\rm\ Recurring \rm\ debt}{\rm\ Income}\\ \rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\$200}{\$5,250}\\\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=3.80\%

<u>Step-4 </u>Computation of debt-to-income ratio of person D:

\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\rm\ Recurring \rm\ debt}{\rm\ Income}\\ \rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\$450}{\$5,583}\\\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=8.06\%

Therefore, after finding debt to income ratios of all persons, the lowest ratio comes out to be of Person C at 3.80% which ranked to be the highest.

Learn more about the debt ratio in the related link:

brainly.com/question/14553933

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I believe John Locke stated that every man was born with the right to Life, Liberty, and Property.

I hope this Helps!
If you happen to find a more solidified answer, please feel free to inform me so I may be more helpful to others in the future :)
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