James Spends Months Developing a Theory of Decision Making

question 10

Multiple Choice

James spends months developing a theory of decision making.But in an experimental test,only half of the participants respond as his theory predicted.James concludes that the rest of the subjects did not understand the directions and proclaims that the experiment is evidence in favor of his theory.This is an example of the ____.

• A) confirmation bias.
• B) conversion effect.
• C) "eureka" phenomenon.
• D) gambler's fallacy

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Definitions:

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Actual Fraud

Refers to intentional deception made for personal gain or to damage another individual.

Material Fact

An important fact that if known might influence a decision maker’s decision, such as in a contract negotiation or in the dissemination of information to investors.

Mislead

To cause someone to have a wrong idea or impression about someone or something.