A Child Is Asked to Estimate the Size of a Poker

question 87

Multiple Choice

A child is asked to estimate the size of a poker chip. The child is then allowed to exchange the poker chip for candy. The child is then asked to estimate the size of an identical poker chip. This time the child's estimate of the poker chip is substantially larger, because the child has learned to place value on the poker chip. This shows the effects of ________ on perception.

• A) motivation
• B) cognitive style
• C) cultural background
• D) expectation

---

Definitions:

Stock Valuation Models

The methods and strategies used to estimate the true value of a company's stock.

Market Value

The current price at which an asset or service can be bought or sold in a public marketplace.

Stock Split

A corporate action to increase the number of outstanding shares by dividing each share, which typically reduces the share price.

Ratio

A numerical comparison between two or more amounts that indicates their relative sizes, often used in finance to assess financial health.