In a Famous Experiment by Robert Rosenthal and Lenore Jacobson

question 184

Multiple Choice

In a famous experiment by Robert Rosenthal and Lenore Jacobson (1966) , teachers at an elementary school were told at the beginning of the year that certain students were "late bloomers" and most likely these particular students were going to become strong students during the school year ahead. Sure enough, by the end of the year, the identified students were doing much better in school. Interestingly, the researchers had selected these children randomly at the beginning of the year and they had no real evidence on which they could base their predictions. The findings in this study are most similar or analogous to the problem of

• A)social desirability bias
• B)experimenter expectancy effects
• C)the placebo effect
• D)the double-blind procedure

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Definitions:

Momentum Effect

The tendency for securities that have performed well in the past to continue performing well in the future.

Martingale Effect

A theory in probability suggesting that past events do not influence future ones, often discussed in the context of gambling or investment strategies.

Fad Effect

A temporary period of high demand for a certain product or service, often without a basis in the product's qualities or utility.

Liquidity Effect

The impact that changes in the supply of money have on interest rates, typically where an increase in money supply leads to a decrease in interest rates.