Tversky and Kahneman (1974)provided Participants with Personality Descriptions of Engineers

question 54

Multiple Choice

Tversky and Kahneman (1974) provided participants with personality descriptions of engineers or lawyers and asked them to choose whether the individual was a 'lawyer' or 'engineer.'Out of a supposed sample of 100 engineers and lawyers,half of participants were told that there were 70 engineers and 30 lawyers while the other half were told that there were 30 engineers and 70 lawyers.Tversky and Kahneman (1974) found that participants did not consider information about the ratio of engineers to lawyers when making their judgments.In other words,participants failed to take into account which of the following?

• A) the base rate
• B) descriptions of the engineers and lawyers
• C) the degree to which the descriptions of the engineers and lawyers matched the participants stereotype of engineers and lawyers
• D) the need to make an adjustment from the initial starting point

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Definitions:

Majority Owner

A majority owner refers to an individual or entity that holds more than 50% of a company's shares, thereby having significant control and decision-making power within the company.

Board of Directors

A group of individuals elected to represent shareholders and make major decisions concerning the corporation, including company policy, and director oversight.

Preferred Shares

Preferred shares represent ownership in a company with preferential rights to dividends and assets upon liquidation, compared to common shares.

Doctrine of Ultra Vires

A principle stating that actions taken by a corporation that are beyond its legal power or authority are invalid.