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andrew11 [14]
4 years ago
7

John is going to buy a car. He wants a used Honda. The salesmen shows him one from 2012. John's not really positive how much the

car is worth to him. The sticker says 14,000 and they end up agreeing on 12,000. If the sticker had said 13,000, John might not have agreed to 12,000 - he might have become convinced that the car was only worth 11,000 to him. While he certainly did not just accept the starting price (he made some changes away from that starting point), his final agreed upon price (or final estimate of the car's value) was still biased/influenced by the first number he heard. John is relying on the:
Business
1 answer:
m_a_m_a [10]4 years ago
4 0

Answer:

anchoring bias

Explanation:

In business, anchoring bias happens when a consumer relies on pre-existing information (in this case sales price) to make their purchasing decisions. E.g. a sales promotion where a before price is set as the anchor to show that the after price (with the discount) is a really good deal.

In this case, John started to negotiate a sales price using the sticker price as an anchor, and ended up making a good deal because he got a $2,000 discount.

You might be interested in
Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 235.00 Variable expense
tatyana61 [14]

Answer:

3,579 units

Explanation:

Computation of the given data are as follows:

Contribution Margin = Selling price - Variable expense

= $235 - $99 = $136

So, to achieve target profit of $34,000

Target Contribution margin = Fixed expense + Target profit

= $452,740 + $34,000

= $486,740

So, sales unit = Target contribution margin ÷ Contribution margin

= $486,740 ÷ $136

= 3,578.97 or 3,579 units

3 0
3 years ago
Edwin is the HR manager at a customer care unit with approximately 1,000 employees. He wants to statistically analyze the servic
Gre4nikov [31]

Full Question:

Edwin is the HR manager at a customer care unit with approximately 1,000 employees. He wants to statistically analyze the service data to make the recruitment process more effective by identifying desirable and undesirable qualities of employees. Edwin observes a high positive correlation between the employees' ability to adapt and the turnaround time. However, he decides to avoid using this criterion when recruiting employees. Which of the following, if true, would MOST strengthen this decision to avoid the criterion

A) The statistical significance of the correlation was found to be sixty percent.

B) Another trait, honesty, had a higher correlation coefficient than employees' ability to adapt.

C) The sample size used by Edwin was significantly larger than what was required.

D) Multiple regressions were observed among the variables used for the analysis.

Answer:

The correct answer here is A)

Explanation:

The key to decision making using statistical research is <em>Statistical Significance.  </em>This means that a statistically significant observation is probably true. In this case, the statistical significance of his findings is 60%.

Cheers!

7 0
3 years ago
Mrs. Brown is a lawyer, specialized in common-law and she
jeka57 [31]

Mrs. Brown has to follow the provincial law regime.

<u>Explanation:</u>

  • The basic difference between federal and provincial law is that federal law or the federal government enacts laws and legislation for all the state of the country while provincial laws are those laws that are for the specific province or state. Furthermore, the Federal government has the authority to enact criminal laws and enactments while the provincial law has got no such authority.
  • The Canadian Federal Government is solely responsible for making laws and legislation that covers and impacts the entire country while the provincial government has the authority to make enactments which directly impacts and concerns their territory. The federal laws concern laws governing the national interest of the country including national defense, criminal law, and national postal services while health care, public education, and highways are part of provincial government legislation.  
  • In the given question, Mrs. Brown who is a lawyer by profession wants to create a company to operate her business activities in all provinces and territories - this is a situation which requires provincial law to be implemented since it concerns the business formation and it's operation for an individual and hence doesn't concerns the national interest of the country.  
7 0
4 years ago
A monopolist that practices perfect price discrimination has the same deadweight loss triangle as the single-price monopolist.
beks73 [17]

Answer:

The correct answer is the option B: False.

Explanation:

To begin with, the price discrimination strategy refers to a technique used by the companies in order to charge different prices to the different consumers regarding the fact of how much would they be able to pay for the product. When it comes to monopolies, a perfect price discrimination strategy would try as best as possible to capture the majority of the zone known as the <em>"consumer surplus"</em>. And that is why that a company with a perfect price discrimination would face a small deadweight loss area due to the fact that with that strategy of price the monopolist will absorve as much as possible of that area becuase the triangle is half consumer surplus and half producer surplus.

7 0
3 years ago
The amount of uncollectible accounts at the end of the year is estimated to be $35,000, using the aging of accounts receivable m
vladimir2022 [97]

Answer:

$35,000

Explanation:

As the Allowance of Doubtful Accounts account  already has the balance of $12,000, and we need $35,000 at the end of the year. We know that Allowance of Doubtful Accounts account account has credit nature so it needed $23,000 ($35,000 - $12,000) to be adjusted at the end of the year to make the adjusted balance equals to $35,000. So, the adjusted account balance will be $35,000.

6 0
3 years ago
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