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:

Trypanosomes

Single-celled parasitic organisms responsible for diseases like African sleeping sickness and Chagas' disease, transmitted by insect vectors.

Foraminiferans

Single-celled protists with shells, known for their role in marine ecosystems and as indicators of environmental change.

Rhizarians

A group of mostly unicellular eukaryotic organisms that include foraminifera, radiolarians, and cercozoans, characterized by their amoeboid movement and complex shell structures.

Coccolithophorids

A group of planktonic algae that produce calcium carbonate plates known as coccoliths, contributing significantly to marine sediments.