Suppose Evan and Robert Are Each Filling Out a Separate

question 61

Multiple Choice

Suppose Evan and Robert are each filling out a separate survey about parking on campus. On Evan's survey, the first question asks about whether he thinks the fine for parking illegally on campus should be $50, and on Robert's survey the first question asks about whether he thinks the fine should be $100. For both Evan and Robert, the second question asks how much each thinks the fine currently is. If Evan and Robert know nothing about the parking fines on campus, but each uses anchoring and adjustment to form his assessment, then, all else equal, you would expect:

• A)Evan's estimate of the current fine to be higher than Robert's.
• B)both of them to guess a number between $50 and $100.
• C)their estimates to be identical.
• D)Robert's estimate of the current fine to be higher than Evan's.

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Definitions:

Customer Support Department

A specialized division within a company dedicated to addressing customer inquiries, concerns, and issues, ensuring customer satisfaction.

Customer Cost Analysis

An evaluation of the total cost incurred by a business to serve a customer, including product, service, and indirect costs.

Time-Driven Activity-Based Costing

An accounting method that assigns costs to products based on the time employees spend on each activity involved in its production or service.

Order Fulfillment Department

A division within a company responsible for processing and delivering orders to customers.