In the Ultimatum Game, Allocators Usually Offer Recipients at Least

question 89

Multiple Choice

In the ultimatum game, allocators usually offer recipients at least a 40 percent share of the money, and recipients almost always reject offers of less than a 10 percent share.Which of the following does not explain why allocators offer recipients a relatively generous share and why recipients reject meager offers?

• A)Fear of arousing outrage and abhorrence could influence economic decisions.
• B)People can and often do reject offers that offend their sense of fairness even if doing so means taking a monetary loss.
• C)Some people are careful not to engage in economic behavior that might offend and alienate others.
• D)Allocators can count on recipients to ignore all considerations except financial benefit.

Differentiate between correct and incorrect interpretations of confidence intervals.

Recognize the key components required to construct a confidence interval for a population mean.

Understand the impact of changing the confidence level on the width of the confidence interval.

Grasp the relationship between the population mean, sample mean, and confidence intervals.

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Definitions:

Sarbanes-Oxley

A U.S. law passed in 2002 to protect investors from fraudulent financial reporting by corporations.

Internal Controls

Procedures and mechanisms implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Fraud

Intentional deception made for personal gain or to damage another individual.

Sarbanes-Oxley

A U.S. federal law enacted to protect investors by improving the accuracy and reliability of corporate disclosures, made in response to financial scandals.