When Her Professor Failed to Recognize That Judy Had Her

question 15

Multiple Choice

When her professor failed to recognize that Judy had her hand raised for a question, Judy began to think her professor was unfriendly. Although she subsequently learned that the professor's limited vision kept him from seeing her raised hand, she continued thinking the professor was unfriendly. Judy's reaction best illustrates

• A) the framing effect.
• B) belief perseverance.
• C) a critical period.
• D) the availability heuristic.

Identify factors that influence group decision-making, including the presence of a strong, directive leader and self-censorship.

Understand the impact of diverse opinions and independent thinking on group effectiveness ("wisdom of crowds").

Recognize behavioral contagion in groups, exemplified by the "bad apple" effect.

Comprehend how group decisions can suffer from limited information and lack of optimal leadership.

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Definitions:

Zero-Coupon Bond

A type of bond that does not pay periodic interest payments and is instead issued at a deep discount to its face value.

Implicit Interest

The cost of borrowing that is not explicitly stated as an interest rate, often factored into the terms of leases or other financial agreements.

Face Value

The nominal or dollar value printed on a security, such as a bond or stock, representing its legal worth.

Effective Annual Yield

The interest rate on an investment or loan, which is compounded more than once per year, represented as an annual rate.