Joe Preorders a Nonrefundable Movie Ticket

question 23

Multiple Choice

Joe preorders a nonrefundable movie ticket. He then reads a number of reviews of the movie in question that make him realise that he will not enjoy it. He goes to see it anyway, rationalising that otherwise his money will have been wasted. Is Joe succumbing to the Sunk Cost Fallacy, and why?

• A) No, because he incurred no further costs by going to see the movie.
• B) Yes, since he invested a valuable asset, his time, in a project based on its previous costs.
• C) No, because going to see the movie means that the product of his initial investment was realised as originally planned.
• D) No, because the cost of the movie was not recoverable and would have been lost whatever action he took.

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Definitions:

Admit Patients

The process of accepting individuals into a healthcare facility for treatment.

Probability

A numerical expression of the potential for a given event to take place, with values spanning from 0 to 1.

Binomial Experiment

An experiment with two outcomes (success and failure) for each trial, with a fixed number of trials and constant probability of success.

Successes

The occurrences of a defined outcome of interest in a series of trials or tests.