BargainStock.com Based on Incomplete but Reliable Factual Information, Maggie Has Decided

question 153

Multiple Choice

BargainStock.com
Based on incomplete but reliable factual information, Maggie has decided to open BargainStock.com, an online stock trading company. Relying on her past experience and judgment, Maggie estimates a very high probability of success. Maggie feels that online stock trading, especially short-term day trading, will be lucrative for her business because when people are making money trading they want to make even more and when they are losing they keep "throwing good money after bad" to recoup.
-Refer to BargainStock.com. "Throwing good money after bad" describes the ____ decision trap among stock traders.

• A) satisficing
• B) dollar cost averaging
• C) framing error
• D) escalation of commitment
• E) overconfidence

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Definitions:

Premotor Neurons

Neurons located in the brain's motor areas involved in the planning and initiation of movement, working closely with motor neurons to execute movements.

Sensory Neurons

Cells that transmit sensory information from the body's periphery to the central nervous system.

Snap Fingers

Snap Fingers refers to the action of creating a snapping sound with one's fingers, usually by quickly moving the thumb and middle finger together.

Forethought

The action of thinking about and planning for future events or tasks before they happen.