A Lab Orders 100 Rats a Week for Each of the 52

question 102

Multiple Choice

A lab orders 100 rats a week for each of the 52 weeks in the year for experiments that the lab conducts. Prices for 100 rats follow the following distribution:
$$\begin{array} { l | r r r } \text { Price: } & \$ 10.00 & \$ 12.50 & \$ 15.00 \\\hline \text { Probability: } & 0.35 & 0.40 & 0.25\end{array}$$
How much should the lab budget for next year's rat orders be, assuming this distribution does not change?

• A) $780
• B) $520
• C) $637
• D) $650

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Definitions:

Certainty Bias

The tendency for individuals to favor information or options that appear more certain or less ambiguous.

Temporal Discounting

The tendency to value immediate rewards more highly than future rewards, leading to decisions that favor short-term gains over long-term benefits.

Omission Bias

The tendency to favor inaction over action, based on the assumption that harm caused by doing nothing is less morally reprehensible than harm caused by acting.

Reactance

A psychological reaction that occurs when an individual feels their freedom to choose is being restricted, leading them to resist or do the opposite of what is being imposed.