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zlopas [31]
3 years ago
14

Kahneman and Tversky used experiments to examine how people actually make decisions about risk. The researchers found a multi-st

ep process with editing and evaluating phases. People showed a strong preference to avoid losses, much more than probability or expected value would suggest. Their name for this process is _______.
Business
1 answer:
blsea [12.9K]3 years ago
6 0

Answer:

prospect theory is the correct answer.

Explanation:

  • Prospect theory is the psychological theory explained by Daniel Kahneman and Amos Tversky in the year 1979.
  • Prospect theory is also termed as loss aversion theory.
  • Prospect theory explains how somebody makes a decision and choose among the several options in the risk situation.
  • Prospect theory is used to explain different perspectives of political and economic decision making such as in international connections.

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Abe owns a dog; the dog's barking annoys Abe's neighbor, Jenny. Suppose that the benefit of owning the dog is worth $200 to Abe
umka2103 [35]

Answer:

Jenny pays Abe $300 to give the dog to his parents who live on an isolated farm

Explanation:

The answer is already stated within the question, but I'll provide  the explanation.

In order to reach a solution, Jenny would have to offer Abe an amount to get rid of the dog that is more than Abe's benefit of owning the dog, which is $200.

On the other hand, since Jenny bears a cost of $400 from the bark, she would only be willing to spend as much as $400 to resolve the situation. Therefore, the acceptable range for the amount of the agreement for both parts is:

$200 < X < $400.

Since $300 is within that range. Jenny paying Abe $300 to give the dog to his parents is a possible solution.

6 0
3 years ago
Read 2 more answers
Choose one of the scenarios below and write a three-paragraph essay describing its effect on prices for food, housing, and oil.
Ray Of Light [21]
<span>The issue isn't black and white, a true answer is closer to the middle ground but to play devil's advocate I personally believe investors have a net positive effect on companies they keyword: invest in. Investments naturally leads to expansion and growth, that's always at least a main goal of anyone profitable company. It produces more jobs, but it can have the negative effect of curbing jobs in the name of cutting costs. A lasting problem is an overreliance in investment when companies don't have enough liquidity to continue running and is forced to sell assets valuable to the business in times of panics and reduced investment. Overall investors are in large part a reason for the success of modern corporations.</span>
4 0
3 years ago
When you are in a conflict with another person, it is important to remember:
Galina-37 [17]
C. that you also helped create the conflict
6 0
3 years ago
Hilda and Hyatt paid $7,875 last year in mortgage interest, $4,200 in principal payments, $1,850 in property tax, $840 in mortga
olga55 [171]

Answer:

Mortgage interest of $7,875 and property taxes of $1,850.

Explanation:

A tax deduction can be defined as the total amount of money that one can deduct to lower their tax liability. More tax deductions always implies a reduced tax liability. In dealing with mortgage payments, tax deductions should be considered carefully to determine how much one tax one needs to pay. The following mortgage expenses are considered for deductions;

1. Mortgage interest

A mortgage interest deduction is a deduction that allows homeowners to subtract the interest on the loan they used to pay for the purchase, improvements or building of a home. In our case, Hilda and Hyatt are liable to a deduction of $7,875.

2. Property tax

In general, state and local property taxes are eligible to be deducted from the federal income taxes of a property owner. The only taxes that are deductible are state, local and foreign taxes levied for public welfare. They do not include services like home renovation and trash collection. The federal tax as of 2018 for property tax was capped at a total of $10,000. This means that any property tax value below $10,000 was eligible to a property tax deduction of that amount.

3 0
2 years ago
Profitability Analysis Kolby Enterprises reports the following information on its income statement: L04 Net sales ......... . ..
notsponge [240]

Answer:

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 - 150,000) / 250,000

= 40%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 - 150,000 + 15,000 - 10,000 - 10,000 - 50,000) / 250,000

= 18%

<u>With new product:</u>

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 + 45,000  - 150,000 - 38,000) / (250,000 + 45,000)

= 36.3%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 + 45,000  - 150,000 - 38,000 + 15,000 - 10,000 - 10,000 - 50,000) / (250,000 + 45,000)

= 52,000 / 295,000

= 17.6%

3 0
3 years ago
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