Selecting a New Computer Based on a Low Price Without

question 17

Multiple Choice

Selecting a new computer based on a low price without analyzing what software,warranties,and peripherals come with it is an example of

• A)availability bias.
• B)framing bias.
• C)escalation of commitment bias.
• D)anchoring and adjustment bias.

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Definitions:

S&P 500 Index Futures

Financial contracts that speculate on the future value of the S&P 500 index, allowing investors to bet on the direction of the stock market.

Buy

The action of acquiring ownership in a financial asset with the expectation that its value will increase over time.

Futures Contract

A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Specified Amount

A clearly defined sum or quantity noted in a financial agreement or contract.