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“Fundamental attribution error

In your own words, please provide short answers (two to eight sentences) to the following questions:

1. Why do you think humans have the tendency to make the “fundamental attribution error”?

2. In stock market trading, it has been frequently found that investors tend to choose a stock based on its most recent performance while ignoring its past performance or rating. Which effect in communication leads to this phenomenon? (Please both identify the effect and briefly explain why this phenomenon was cause by the effect you have identified).

3. Why is it that sometimes when we select a word to use, we must not only consider its denotation but also its connotations? Give an example.