Suppose You Would Have to Pay Alicia at Least $150

question 12

Multiple Choice

Suppose you would have to pay Alicia at least $150 to get her to part with a ticket she just bought to see her favorite band play next Friday. Loss aversion implies that if Alicia had not yet bought the ticket, she would:

• A)be willing to pay more than $150 for it.
• B)be willing to pay less than $150 for it.
• C)be willing to pay exactly $150 for it.
• D)no longer be interested in purchasing it.

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Definitions:

Assessing Reliability

The process of determining the consistency and stability of a measurement tool or test over time.

Internal Consistency

A measure of reliability which evaluates how strongly items in an assessment are related in a single administration.

Test-Retest

A method of determining the reliability of a test by administering the same test to the same subjects at two different points in time.

Correlation Coefficient

A numeric value that indicates the strength of the relationship between two variables.