Which of the Following Is an Example of a Commitment

question 35

Multiple Choice

Which of the following is an example of a commitment device?

• A) Lu-yin has part of each paycheck deposited in a vacation savings account
• B) Tassili is indifferent between (a) paying $1 in three years and receiving $2 in four years or (b) paying $1 today and receiving $2 next year
• C) Frank eats a piece of cake today and saves the rest of the cake for eating later

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Definitions:

Population Distributions

The spread of a characteristic within a whole population, reflecting how frequently different values occur.

Nonparametric Methods

Nonparametric methods are statistical techniques that do not assume a specific distribution for the data, often used when data do not meet the assumptions required by parametric methods.

Ordinal Data

A type of categorical data in which the categories have a natural order or ranking, but the intervals between the categories are not necessarily equal.

Wilcoxon Signed Rank

A nonparametric statistical test used to compare two related samples, matched samples, or repeated measurements on a single sample to assess whether their population mean ranks differ.