Suppose That a Student Named John Is Asked to Judge

question 9

Multiple Choice

Suppose that a student named John is asked to judge how many students are enrolled in his introductory biology class.He replies,"about 100….well,maybe between about 90 and 110." Based on the discussion of confidence intervals,you predict that

• A)John's estimate probably relies too heavily on the ease with which examples come to mind.
• B)John is likely to be heavily influenced by the confirmation bias.
• C)John probably relied too heavily on the initial anchor of 100 students.
• D)John probably would have been wiser to use the representativeness heuristic to estimate the confidence intervals.

---

Definitions:

Stock Price Stable

A condition where a stock's price shows minimal volatility and maintains a relatively constant value over a period.

Long Call

An options trading strategy where an investor purchases a call option, betting that the underlying asset's price will increase.

Short Put

An options trading strategy involving the sale of put options, betting that the underlying asset will not decline below the strike price before expiration.

Option Quotes

Option quotes provide the price at which an option can be bought or sold, displaying details like the strike price, expiration date, and whether it's a call or put option.