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RoseWind [281]
4 years ago
7

One of the core problems that created the financial meltdown of 2008 was that large loans were made to individuals who could not

repay them, and the finance companies purchased these bad debts without realizing how poor the prospects of repayment were. Which of the following decision-making errors was made by the lenders and borrowers?A) hindsight biasB) availability biasC) overconfidence biasD) confirmation biasE) anchoring bias
Business
2 answers:
VMariaS [17]4 years ago
7 0

Answer:

The correct answer is letter "D": confirmation bias.

Explanation:

In psychology, confirmation bias is a cognitive process by which individuals tend to favor input to confirm certain beliefs or biases they already had. The term is associated with behavioral finance at the moment of determining subjective and poor decision making.

Usually, <em>this happens when investors are too optimistic over certain instruments, so, they look for information that can ensure their position over the instrument is correct and dismiss all input that could state the opposite, even if it is true.</em>

ExtremeBDS [4]4 years ago
6 0

Answer:

D) confirmation bias

Explanation:

Confirmation bias, the tendency to process information by looking for, or interpreting, information that is consistent with one’s existing beliefs. This biased approach to decision making is largely unintentional and often results in ignoring inconsistent information. Existing beliefs can include one’s expectations in a given situation and predictions about a particular outcome. People are especially likely to process information to support their own beliefs when the issue is highly important or self-relevant.

Confirmation bias is important because it may lead people to hold strongly to false beliefs or to give more weight to information that supports their beliefs than is warranted by the evidence.

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belka [17]
They would think u ran a red light or u prob Rob a bank,Jew store,ect.
3 0
4 years ago
Heritage, Inc., had a cost of goods sold of $68,314. At the end of the year, the accounts payable balance was $15,486. How long
loris [4]

Answer:

Account payable days = 82.74 days

Explanation:

<em>The payable days is the  average length of time it takes for a business to settle its account payable.</em>

it is calculated as follows:

Account payable days = average account payable/ cost of goods sold×  365 days

= 15,486/68314× 365 days= 82.7413

It will take Heritage about 82.74 days to settle its account payable.

=

5 0
3 years ago
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Dmitriy789 [7]

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Based on the scenario in the question, Becca's approach to getting Joe up to speed indicates that she is coaching rather Joe than helping him.

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3 years ago
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nadezda [96]

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In a theoretical game, there are two players that have to embark on different strategies such that they make the maximum payoff. This maximum payoff strategy is known as the dominant strategy.

These two players are the decision making entities in the firms that are competing in the game because they are the ones that decide how the firm should react and what strategy to use. For instance, the owners of the two bakeries down the street are the players because they control what either bakery will do.

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