Terrance Has Decided to Buy a New Television

question 208

Multiple Choice

Terrance has decided to buy a new television.After looking at a few models on the internet and asking a few friends,he decides which television he wants.When he gets to the store,the sales clerk tells him that,for the same price,she can offer him a much better television than the one he chose.Terrance still chooses the one he had decided on before he came into the store.Terrance has made his decision based on

• A) the availability heuristic.
• B) the representative heuristic.
• C) bounded rationality.
• D) an algorithm.

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Definitions:

Scatter Plot Line

Might refer to a trend line drawn through a scatter plot to show the direction of the relationship between two variables, although "Scatter Plot Line" is not a standard term.

Correlation

An index quantifying how much two or more variables move in conjunction with one another.

Prediction Error

The difference between the observed values and the values predicted by a model.

Absolute Value

The non-negative value of a number without regard to its sign; essentially, it's the distance of a number from zero on the real number line.