Escalation of Commitment to a Failing Course of Action

question 173

Multiple Choice

Escalation of commitment to a failing course of action

• A)only occurs if the decision maker was personally responsible for the initial loss.
• B)shows how people may treat sunk costs improperly.
• C)is what defines the occurrence of a risky shift.
• D)is the most common outcome of information overload.
• E)only occurs in highly competitive situations.

---

Definitions:

Qualitative Variables

Variables that express attributes or categories, such as gender, nationality, or brand preference, and cannot be quantitatively measured.

Degrees of Freedom

The tally of distinct numbers or magnitudes assignable to a statistical distribution.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to determine the distribution's parameter.

Chi-Squared Test Statistic

A value used in chi-squared tests to evaluate how likely observed frequencies of events are to occur under a specific hypothetical distribution.