Suppose Greg and Marsha Apply for a Prestigious Scholarship Program

question 35

Multiple Choice

Suppose Greg and Marsha apply for a prestigious scholarship program, and both get rejected. Greg finds out that his application was flat out rejected (he never had a chance) , whereas Marsha finds out that she was the first runner up (she nearly won) . Who is likely to be more disappointed? Why?

• A)Greg-because of the simulation heuristic
• B)Greg-because of the confirmation bias
• C)Marsha-because of the simulation heuristic
• D)Marsha-because of the confirmation bias

---

Definitions:

Expected Selling Price

The price at which an asset is projected to sell in the future, based on various factors such as market trends and economic conditions.

Buying Stock

The act of purchasing ownership shares in a corporation, thereby obtaining a stake in its earnings and assets.

Expected Dividend

The forecasted dividend payment announced by a corporation's board of directors to its shareholders.

Last Paid a Dividend

The most recent instance when a company distributed a portion of its earnings to shareholders in the form of dividends.