In a Study by Hovland and Weiss, Subjects Heard Arguments

question 13

Multiple Choice

In a study by Hovland and Weiss, subjects heard arguments regarding the feasibility of atomic submarines. Subjects were more persuaded by physicist J. Robert Oppenheimer rather than the Soviet newspaper Pravda because:

• A) Oppenheimer was an attractive source, and thus subjects wished to identify with him
• B) Oppenheimer was perceived as an expert and trustworthy source of information, unlike Pravda
• C) Oppenheimer's arguments contained vivid examples, whereas Pravda presented the information in the form of statistics
• D) subjects knew that Pravda was arguing against its own self-interest and thus could not be trusted

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Definitions:

Reverse Stock Split

A corporate action where a company reduces its total number of shares outstanding, thereby increasing the value of each remaining share.

Market Price

The present cost at which a service or asset is available for purchase or sale in the financial marketplace.

Residual Dividend

A policy by which dividends are paid to shareholders after all project capital needs and working capital requirements are met.

Positive Net Present Value

An indicator that an investment will generate more value than its cost, signifying its profitability.