ECONOMICS
DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Use the mode because then we would know the most commonly stated responses.
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Use the median because the answers are not real values, only guesses.
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Use a Mann Whitney U test to let us know the significance of the data.
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Calculate the range of data so that we can see if there are any outliers.
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Detailed explanation-1: -In Strack and Mussweiler’s (1997) study of anchoring bias, the results are reported as means. What would be the best suggestion for the researchers? Calculate the range of data so that we can see if there are any outliers. Use a Mann Whitney U test to let us know the significance of the data.
Detailed explanation-2: -They found that high anchors led to higher absolute judgements than did low anchors. They also found that the anchoring effect took place for plausible and implausible anchors. They also revealed that the implausible anchors were at least as effective as plausible ones.
Detailed explanation-3: -Gandhi and the Anchoring Effect (Strack and Mussweiler, 1997) This study shows that numbers that are impossibly linked to the target question can still have an effect. Their aim was to see how the anchoring effect could influence guesses of Mahatma Gandhi age when he died.
Detailed explanation-4: -Revised on January 9, 2023. Anchoring bias describes people’s tendency to rely too heavily on the first piece of information they receive on a topic. Regardless of the accuracy of that information, people use it as a reference point, or anchor, to make subsequent judgments.
Detailed explanation-5: -Anchor bias can lead to poor decision-making. When you rely too heavily on a single piece of information, especially if that piece of information doesn’t accurately represent a situation, it can lead to uninformed decisions.