Suppose You Win a Small Lottery and You Are Given

question 122

Multiple Choice

Suppose you win a small lottery and you are given the following choice: You can (1) receive an immediate payment of $10,000 or (2) three annual payments, each in the amount of $3,600, with the first payment coming one year from now, the second two years from now, and the third three years from now. You would choose to take the three annual payments if the interest rate is

• A)2 percent, but not if the interest rate is 3 percent.
• B)3 percent, but not if the interest rate is 4 percent.
• C)4 percent, but not if the interest rate is 5 percent.
• D)5 percent, but not if the interest rate is 6 percent.

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Definitions:

State-Dependent Learning

The theory that information learned in a specific state of mind (e.g., emotional, physiological) is more easily recalled when in that same state.

Conditioned Stimulus

An initially neutral signal that, once linked with an unconditioned stimulus, ultimately elicits a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior learning.

Response of Interest

The specific reaction or outcome measured in a research study to evaluate the effects of various conditions or treatments.