What potential biases exist in project selection if Nico Manufacturing did not adjust for the difference in risk between Projects X and Y (See Table 11.10)
What will be an ideal response?
The danger of not accounting for differences in project risk is that the firm may potentially chose unacceptable high-risk projects (with negative NPVs) over potentially acceptable low-risk projects (with positive NPVs).
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Which inventory cost flow assumption is not allowed for financial reporting in many foreign countries?
A) specific identification B) average C) FIFO D) LIFO
Validity can be assessed by examining all of the following except ________
A) item validity B) content validity C) criterion validity D) construct validity
Chris has studied for his mathematics test and his English test. He expects to do moderately well in both subjects. He gets an "A" in English, but fails mathematics. While Chris feels that the grade he got for English was well-deserved, he blames his failure in mathematics on the fact that his teacher, Mr. Wallace, does not like him. In this situation, Chris is exhibitingÂ
A. a self-serving bias. B. stereotypical behavior. C. a negativity bias. D. micro-aggression. E. a fundamental attribution bias.
Which bias is the inclination to believe that other people think, feel, and act the same way we do?
What will be an ideal response?