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17 CHAPTER SOLUTIONS AND MINI-PROJECT NOTES CHAPTER 17 PSYCHOLOGICAL INFLUENCES ON PERSONAL PROBABILITY EXERCISE SOLUTIONS 17.1 The pseudocertainty effect applies to situations where the risk is reduced to zero for only a subset of possibilities and is not affected at all for the others. Anchoring is used. You anchor on the higher values and think they are normal, so the price of $16.99 sounds really good. The...
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17 CHAPTER SOLUTIONS AND MINI-PROJECT NOTES
CHAPTER 17 PSYCHOLOGICAL INFLUENCES ON PERSONAL PROBABILITY EXERCISE SOLUTIONS
17.1
The pseudocertainty effect applies to situations where the risk is reduced to zero for only a subset of possibilities and is not affected at all for the others. Anchoring is used. You anchor on the higher values and think they are normal, so the price of $16.99 sounds really good. The availability heuristic is responsible because mosquitoes are more likely to bother people, and many of the termites are in unpopulated areas. a. The events in the second statement are a subset of the first. From Rule 4 in Chapter 16, we know that the probability of a subset of events cannot be higher than the probability of the full set. (Notice that personal probabilities are relevant here, but the rules should still apply.) b. They are likely to a...
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