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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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The chief executive of Norell, an agency that supplies businesses with temporary workers, realizes that the health care industry
Rus_ich [418]

Answer:

D) Recognition of a need

Explanation:

The 5 stages of the buying process are:

  1. problem recognition (or recognition of a need): this is the first stage of the buying process. At this stage the buyer realizes that he/she has an unsatisfied need or want. The buyer will try to change his current state by satisfying his/her need.
  2. information search
  3. evaluation of alternatives
  4. purchase decision
  5. post purchase behavior

4 0
4 years ago
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How do i make spaghetti?
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Boil noodles. add sauce. make meat balls. add it together. yummy.
6 0
3 years ago
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What feature of the operator’s manual provides supplemental information such as References, basic issue item (BII) lists, and lu
irinina [24]

Answer:

Appendices

Explanation:

Operator's manual have various Chapters in it. Each of them are designated to some particular topic.

As for example the first chapter towards the basic description of vehicle, second towards the operating instructions, as to where and how the vehicle shall run and the basic guidelines, third chapter might contain the details for the use of vehicle in case of any emergencies.

Further at the last or near to last there is appendices which shows the references, all the items basically issued, vehicle sign/ decal information, lubrication etc:

3 0
3 years ago
Only the short-run Phillips curve is downward sloping because: a in the long run, prices adjust, eliminating the relationship be
AysviL [449]

Answer:

a in the long run, prices adjust, eliminating the relationship between inflation and unemployment

Explanation:

Philip's curve states that there is an inverse relationship between inflation and unemployment in the short run. However, in the long run, workers and consumers adapt to the new environment.

6 0
4 years ago
Sally’s employer pays for 38% of her annual health insurance premium of $4,350.00. Sally pays the remaining balance by having it
Viefleur [7K]

Answer:$103.73

Explanation: Sally has her annual health insurance premium to be $4,350 per annum.

Her company pays 38% of $4,350= $1,653

Sally pays =$4,350-$1,653 = $2,697

Sally pays in 26 instalments = $2,697/26= $103.73

A sum of $103.73 will be deducted from sally's paycheck monthly.

4 0
3 years ago
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