The Textbook Describes a Study in Which One Group of Participants

question 57

Multiple Choice

The textbook describes a study in which one group of participants was asked to determine whether working out a day before a tennis match made the player more likely to win, and another group of participants was asked to determine whether working out a day before a tennis match made a player more likely to lose.Consistent with the confirmation bias, participants in the group examining a connection between working out and winning were most likely to search for

• A) information about how many players did not work out, and then lost their match.
• B) information about how many players did not work out, and then won their match.
• C) information about how many players worked out, and then lost their match.
• D) information about how many players worked out, and then won their match.

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Definitions:

Zero-Coupon Bond

A financial security that does not pay periodic interest but is sold at a discount from its face value, and the investor receives the face value at maturity.

Maturity

The date when the principal or nominal amount of a financial instrument, such as a bond or loan, becomes due and payable.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, typically not related to its market value.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage rate based on the investment's cost or current market value.