A Waiter Expects a Group of Poorly Dressed Customers to Be

question 122

Multiple Choice

A waiter expects a group of poorly dressed customers to be stingy tippers and gives them poor service, so he gets the result that he expects, a very small tip.This is an example of the

• A)halo effect.
• B)self-fulfilling prophecy.
• C)fundamental attribution bias.
• D)self-serving bias.
• E)selective perception error.

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Definitions:

Average Rate of Return Method

A method of evaluating a project or investment by determining the average annual rate of return it will generate.

Net Present Value Method

A method of evaluating investments by calculating the present value of expected future cash flows, subtracting the initial investment.

Internal Rate of Return Method

A capital budgeting technique used to evaluate and compare the profitability of investments, calculating the interest rate at which the net present value of costs equals the net present value of benefits.

Capital Rationing

The process of selecting the most profitable projects to invest in when a company has a limited amount of capital.