You Don't Particularly Like to Shop So Only Go to the Mall

question 60

Multiple Choice

You don't particularly like to shop so only go to the mall once a month. To help make the trek more enjoyable, you always have lunch at the restaurant located inside the mall. Since you are such a creature of habit, you always order the same meal. You've noticed that the price of that meal has increased every time you have been there over the past six months. Thus, you expect the meal to increase in price next month. This is an example of which one of the following?

• A) Recency bias.
• B) Anchoring and adjustment.
• C) Frame dependence.
• D) Aversion to ambiguity.
• E) Clustering illusion.

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Definitions:

Simple Linear Regression

An analytical technique that fits a linear equation to data points to model how a dependent variable changes with one independent variable.

Variation

Variation refers to the differences or deviations among individuals or objects in a particular characteristic, within a population, species, or set of data.

Slope Coefficient

A parameter in a linear regression model that quantifies the change in the response variable for a one-unit change in the predictor variable.

Sample to Sample

Variation in statistics, refers to the differences observed between various samples drawn from the same population due to randomness.