Consider the First Four Levels of a Pyramid Scheme Where $\$ 46,656 ; \$ 46,655$

question 165

Multiple Choice

Consider the first four levels of a pyramid scheme where "each one recruits six." a) If you are the top person in the chart, and each person's entry fee is $1, how much money will you receive and
What will your profit be? b) What is the total number of members from level 1 through level 4?

• A) a) \(\$ 46,656 ; \$ 46,655\)
• b) 1554
• B) a) \(\$ 46,656 ; \$ 46,655\)
• b) 1555
• C) a) \(\$ 216 ; \$ 7770\)
• b) 258
• D) a) \(\$ 216\); \(\$ 215\)
• b) 259

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Definitions:

Availability

The state of being able to be used or obtained; readiness for use.

Representativeness

A cognitive bias in decision making where the likelihood of an occurrence is evaluated based on how similar it is to stereotypes or typical cases.

Anchoring Bias

A mental shortcut in which a person gives disproportionate weight to the first piece of information they receive (known as the "anchor") during decision-making processes.

Anchoring And Adjustment

Anchoring and adjustment is a cognitive bias in decision-making where an initial piece of information, the "anchor," heavily influences subsequent judgments and adjustments.