Let's Say You Have a Choice Between Two Checking Plans

question 21

Multiple Choice

Let's say you have a choice between two checking plans. With the first plan, you will be charged $ 3 per month plus 25 ¢ per check. With the second plan, you will be charged $ 4 per month regardless of how many checks you write. If you write only a few checks, the first plan is clearly cheaper. Similarly, if you write many checks a month, the second plan is clearly cheaper. Determine the number x that will enable you to make the following statement: If you write 1 to x checks per month, choose the first plan. If you write more than x checks per month, choose the second plan. ​

• A) x = 8
• B) x = 10
• C) x = 2
• D) x = 4
• E) x = 16

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Definitions:

Olympic Bronze Medalists

Athletes who have achieved third place in their respective events at the Olympic Games.

Overconfidence

A cognitive bias that causes a person to believe that they are more capable or knowledgeable than they actually are.

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or at the end.

Distinctiveness

The quality of being unique or different in comparison to others, often making a person or object stand out.