You recently overheard your boss telling someone that if he'd actually crunched some numbers and done some analysis instead

You recently overheard your boss telling someone that if he'd actually crunched some numbers and done some analysis instead of just going with his instincts that he never would have opened the new store in Centre City. Which one of the following caused your boss to make a bad decision?    A.  regret aversion B.  endowment effect C.  money illusion D.  affect heuristic E.  representativeness heuristic Refer to section 22.4

28.

Roger's Meat Market is a chain of retail stores that limits its sales to fresh-cut meats. The stores have been very profitable in northern cities. However, when two stores were opened in the south, both lost money and had to be closed. Roger, the owner, has now concluded that no southern-based store should be opened as it would not be profitable. Which one of the following applies to Roger?    A.  confirmation bias B.  endowment effect C.  money illusion D.  affect heuristic E.  representativeness heuristic Refer to section 22.4

29.

Up until three years ago, A.C. Dime opened an average of ten new retail stores a year. One of those stores had to be closed within two years due to poor sales. This 90 percent success ratio was fairly steady for over 30 years. Starting three years ago, the firm has opened 40 new stores and every one had significant profits within 6 months. Management believes their recent success is not just a random event and that all future stores will be profitable. Thus, the managers have decided to open a minimum of 15 new stores each year. The managers are suffering from:    A.  arbitrage limitations. B.  anchoring and adjustment. C.  aversion to ambiguity. D.  the clustering illusion. E.  myopic aversion. Refer to section 22.4

30.

You are employed as a commission-based sales clerk for a cosmetics retail store. You know that on average, exactly 50 percent of the customers that enter your store will make at least one purchase. Thus far this morning, you have waited on eight customers without making a single sale. You are convinced that the next customer you wait on will buy something. This belief is known as:    A.  aversion to ambiguity. B.  the law of small numbers. C.  anchoring and adjusting. D.  gambler's fallacy. E.  false consensus. Refer to section 22.4