Simons and Levin (1997) Conducted an Experiment in Which Participants

question 40

Multiple Choice

Simons and Levin (1997) conducted an experiment in which participants were asked directions by an experimenter.When the participant started giving directions, two other experimenters, posing as construction workers, passed by carrying a detached door.The construction workers passed between the experimenter who had asked for directions and the participant.What happened next?

• A)The first experimenter hid behind the door and exited the scene, while a second experimenter, the same gender and age as the first experimenter, replaced the first.
• B)The participant was asked if he attended to the message written on the detached door.
• C)The door remained between the experimenter and participant, causing the latter to choose between talking through the door or moving around the door to talk.
• D)The experimenter went with the construction workers, leaving the participant with no one to talk to.

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Definitions:

Financial Attribute

Characteristics or features of a financial nature that can be used to analyze or assess the financial position or performance of an entity.

Business Valuation

The process of determining the economic value of a business or company unit, based on analysis of the company's financial performance and market position.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

NPVGO

Net Present Value of Growth Opportunities, a measure assessing the value of future investment opportunities of a company.