You Are Responsible for Purchasing 25 Used Cars for Your

question 269

Multiple Choice

You are responsible for purchasing 25 used cars for your company. Star Brand cars costs $7,500 and Diamond Brand cars cost $6,000. Based on experience, you believe that 20% of Star Brand cars are lemons low quality) while 40% of Diamond Brand cars are lemons low quality) . You are willing to pay $5,000 for a known lemon and $12,000 for a known plum. Which brand do you purchase?

• A)Star
• B)Diamond
• C)indifferent between brands
• D)donʹt buy either brand

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Definitions:

Cognitive Dissonance

The discomfort in one's psyche caused by the coexistence of several contradictory beliefs, ideas, or values.

Attribution

Attribution involves the process of explaining the causes or reasons behind behaviors or events, including the inference of personal traits or external circumstances.

Attitude

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Dispositional Attributions

The tendency to attribute an individual's behavior to internal factors, such as personality traits or disposition, rather than external situational influences.