A Computer Package Was Used to Generate the Following Printout

question 86

Multiple Choice

A computer package was used to generate the following printout for estimating the sale price of condominiumsin a particular neighborhood. $\begin{array}{rl}\text { X}=&\text { sale-price }\\\\\text { SAMPLE MEAN OF X} =&46,600\\\text { SAMPLE STANDARD DEV }=&13,747\\\text { SAMPLE SIZE OF X }= &15\\\text { CONFIDENCE } = &90\\\\\text { UPPER LIMIT }= &52,850.60 \\\text { SAMPLE MEAN OF X }= & 46,600 \\\text { LOWER LIMIT }= &40,349.40\end{array}$

A friend suggests that the mean sale price of homes in this neighborhood is $43,000. Comment on your friend?ssuggestion.

• A) Based on this printout, all you can say is that the mean sale price might be $43,000.
• B) Your friend is wrong, and you are 90% certain.
• C) Your friend is correct, and you are 90% certain.
• D) Your friend is correct, and you are 100% certain.

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Definitions:

Recency Effect

The tendency to remember the most recently presented information better than information presented earlier.

Attribution Theory

A concept in social psychology focused on how individuals interpret events and how this relates to their thinking and behavior, specifically how they attribute causes to successes and failures.

Luchins

Refers to a series of experiments or the psychologist, Abraham Luchins, famous for his work on mental set and problem solving.

Fundamental Attribution Error

The tendency to overestimate the effect of disposition or personality and underestimate the effect of situational factors when observing others' behaviors.