Suppose 1,000 Students Were Split into Two Groups of 500

question 137

Multiple Choice

Suppose 1,000 students were split into two groups of 500.Both groups were first presented with an image of a new high-end pair of jeans produced by Tommy Hilfiger,a clothing company.
The first group was given the following statement and then asked the following question: "The normal retail price of these jeans is $100.Would you be willing to pay $75 for them?"
The second group was given the following statement and then asked the following question: "The normal retail price of these jeans is $250.Would you be willing to pay $75 for them?"
Suppose that 24 percent of the students in the first group answered yes and that 73 percent of the students in the second group answered yes.It is likely that more students in the second group were willing to pay $75 for the pair of jeans because they were told the normal price was much higher.This is an example of a ________ effect in decision-making.

• A) clothing
• B) marketing
• C) utilitarian
• D) framing
• E) psychosomatic

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Definitions:

Normally Distributed

A statistical term describing how data points are distributed in a way that they form a bell-shaped curve, with most values clustering around a central mean and fewer occurring as they move away.

Average Starting Salary

The average starting salary is the mean salary offered to employees with no prior experience in a particular job or field at the beginning of their employment.

Standard Deviation

Standard deviation is a statistical measure of the amount of variability or dispersion around the mean of a set of data points.

Normally Distributed

Describes a dataset that follows a normal distribution curve, characterized by its bell shape and defined by its mean and standard deviation.