Sara Looks into Her Closet and Discovers a Pair of Like-New

question 168

Multiple Choice

Sara looks into her closet and discovers a pair of like-new shoes she no longer wears because they give her blisters. From the economist's perspective, was Sara behaving rationally when she bought those shoes?

• A)No. If any of a person's decisions have poor results, that person is irrational.
• B)Yes, as long as Sara didn't intentionally purchase blister-causing shoes.
• C)No. The rationality assumption states that rational people never make mistakes.
• D)It's not clear because psychology, not economics, deals with the rationality assumption.

---

Definitions:

Confidence Interval

A range of values calculated from a set of data so that it is very likely, to a specified probability, that the true parameter of the population is within this range.

Standard Deviation

A statistic that measures the dispersion or variability of a set of data points from their mean.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a certain degree of confidence.

Millilitres

A metric unit of volume equal to one thousandth of a liter, commonly used in liquid measurement.