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Dr. Zimmerman divided her first-period class into two groups. One group had to read 20 pages in a boring psychology text, but would get 2 extra points on the next test. The other group read the same 20 pages but were given 25 points added to the next test. The class members were then asked to tell the second-period class how interesting the book was. According to the results of the Festinger and Carlsmith study, what prediction could one make about the remarks of the first-period class?
Initial Investment
Initial investment is the initial amount of money spent to start a project, purchase an asset, or embark on a new business venture.
Profitability Index
A financial tool used to measure the relative profitability of an investment, calculated by dividing the present value of future cash flows by the initial investment cost.
Internal Rate
Typically refers to the internal rate of return (IRR), which is a rate of return used in capital budgeting to measure and compare the profitability of investments.
Preference Decisions
Choices made between alternatives based on preferences for certain criteria or outcomes.
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