Up Until Three Years Ago,A

question 26

Multiple Choice

Up until three years ago,A.C.Dime opened an average of ten new retail stores a year.One of those stores had to be closed within two years due to poor sales.This 90 percent success ratio was fairly steady for over 30 years.Starting three years ago,the firm has opened 40 new stores and every one had significant profits within 6 months.Management believes their recent success is not just a random event and that all future stores will be profitable.Thus,the managers have decided to open a minimum of 15 new stores each year.The managers are suffering from:

• A) arbitrage limitations.
• B) anchoring and adjustment.
• C) aversion to ambiguity.
• D) the clustering illusion.
• E) myopic aversion.

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Definitions:

Traffic Engineers

Professionals who apply engineering principles to the planning, design, and management of roads, traffic signals, and other aspects of transportation to ensure safe and efficient movement of people and goods.

Red Light Cycles

The repeated sequence of a traffic signal changing from green to yellow to red and back, regulating vehicle flow.

Malware

Malicious software designed to harm, disrupt, or unauthorizedly access a computer system, network, or device.

Trojan

A type of malware designed to appear harmless or useful to trick users into installing it, which then allows unauthorized access or damage.