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Anon25 [30]
3 years ago
11

Joe lost a substantial amount gambling at a race track today. On the last race of the​ day, he decides to make a large enough be

t on a longshot so​ that, if he​ wins, he will make up for his earlier losses and break even on the day. His friend​ Sue, who is up for the​ day, makes just a small final bet so that she will end up ahead for the day even if she loses the last race.   This is typical race track behavior for winners and losers. Would you explain this behavior using​ over-confidence bias, prospect​ theory, or some other principle of behavioral​ economics? Joe and​ Sue's behavior can be explained by A. the​ gambler's fallacy because they do not believe past events affect​ current, independent outcomes. B. overconfidence because they are overconfident they will win on the​ day's last bet. C. the certainty effect because they place too little weight on outcomes that they consider to be certain relative to risky outcomes. D. the reflection effect because their attitudes toward risk are symmetric for gains and losses. E. prospect theory because they are making decisions relative to their wealth at the start of the day.
Business
1 answer:
melomori [17]3 years ago
8 0

Answer:

A. the gamblers fallacy

Explanation:

This is because he is down a lot but he is still going to take the shot.

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In the fourth stage of rational decision making, managers will _____. evaluate the alternatives and select a solution implement
Ludmilka [50]

Answer:

The correct answer is: implement and evaluate the chosen solution.

Explanation:

Companies generally use different strategies to make decisions to obtain the best benefits. For example, companies often use the rational decision-making process to focus on analysis and logic, leaving subjectivity aside.

Through this method, different steps of the decision-making method are followed to achieve the objectives proposed objectively.

<em>For example, in the fourth step, the chosen solution must be implemented and evaluated, the managers are in charge of analyzing and executing the action plan</em>, in this way they evaluate each result obtained to know if the actions taken are the best and are reaching their goals.

<em>I hope this information can help you.</em>

6 0
3 years ago
A service is any intangible offering that involves a deed, performance, or effort that:
Artyom0805 [142]

Answer:

(A)cannot be physically possessed

Explanation:

A service is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed.

A service is a transaction in which no physical good is transferred to the buyer.

Some of the major properties of Services are:

  • Intangibility
  • Perishability
  • Uniqueness

Examples of services are Education, Consultancy, Repair and maintenance services, Electricians, Plumbing , Law enforcement (provides the service of identifying and apprehending criminals)  etc.

3 0
3 years ago
Read 2 more answers
A portfolio with a 30% standard deviation generated a return of 15% last year when T-bills were paying 6.0%. This portfolio had
jarptica [38.1K]

Answer: 0.3

Explanation:

The Sharpe ratio is simply used by organizations and investors in order to compare the return on an investment to its risk.

From the question, we are informed that a portfolio has a 30% standard deviation generated a return of 15% last year when T-bills were paying 6.0%.

The Sharpe ratio will be:

= (15% - 6.0%)/30%

= 9%/30%

= 0.09/0.3

= 0.3

4 0
4 years ago
Today, a firm has a stock price of $14.26 and an EPS of $1.15. Its close competitor has an EPS of $0.48. What would be the expec
serg [7]

Answer:

$5.952

Explanation:

For the computation of expected price of the competitor's stock first we need to find out the P/E ratio of a firm which is shown below:-

P/E ratio of a firm = Stock price ÷ Earning per share

= $14.26 ÷ $1.15

= $12.4

Price of competitor's stock = P/E ratio of a firm × Earning per share

= $12.4 × $0.48

= $5.952

Therefore for computing the expected price of the competitor's stock we simply applied the above formula.

7 0
3 years ago
Identify the detective control below.
Darina [25.2K]

Answer:

Reconciling the bank statement to the cash control account.

Explanation:

The reason is that the detective approach is the one which helps in identification of the errors in recording the facts and figure in a control system is the detective control. In this case, bank reconciliation helps in accessing the errors and entries that are not recorded in the books of accounts hence it is a detective control.

7 0
3 years ago
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