You don't particularly like to shop so only go to the mall once a month. To help make the trek more enjoyable, you always

You don't particularly like to shop so only go to the mall once a month. To help make the trek more enjoyable, you always have lunch at the restaurant located inside the mall. Since you are such a creature of habit, you always order the same meal. You've noticed that the price of that meal has increased every time you have been there over the past six months. Thus, you expect the meal to increase in price next month. This is an example of which one of the following?    A.  recency bias B.  anchoring and adjustment C.  frame dependence D.  aversion to ambiguity E.  clustering illusion Refer to section 22.4

32.

You started an online business three weeks ago. Thus far, you have averaged 10 sales a day, which is one sale for every five hits. You are now considering giving up your day job and becoming a full-time online retailer. You have calculated the amount of income you can earn based on 10 sales a day and know that level of income would support you in a comfortable fashion. The belief that you will have 10 sales per day on average if this becomes your full-time occupation is based on which one of the following?    A.  mental accounting B.  anchoring and adjustment C.  law of small numbers D.  bubble and crash theory E.  confirmation bias Refer to section 22.4

33.

You are a hard-charging manager who doesn't really like to sit at a desk for too long. You prefer to gather information quickly, make a decision, and move on to the next item on your agenda. Which one of the following applies to you?    A.  availability bias B.  arbitrage limits C.  law of small numbers D.  representativeness heuristic E.  regret aversion Refer to section 22.4

34.

You have saved a total of $200,000 over the past several years. Jane, a trusted business associate, recently approached you with an offer. She has offered you a partnership in a new firm that she expects to be exceedingly profitable. Your initial investment in the partnership would be $125,000. However, Jane cannot give you any odds on that success occurring. You have decided to keep your $125,000 and forego this opportunity simply because you don't know the probability of success. Which one of the following behavior characteristics do you have?    A.  aversion to ambiguity B.  recency bias C.  sentiment-based risk aversion D.  clustering illusion E.  money illusion Refer to section 22.4