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dangina [55]
2 years ago
15

Evaluating your payoffs as gains or losses relative to an arbitrary baseline distorts your decisions and is a problem associated

with: representativeness bias. loss aversion. anchoring bias. overconfidence.
Business
2 answers:
7nadin3 [17]2 years ago
5 0

The study of an agent's or individual's decisions is known as decision theory. The official decision-making process concludes with evaluation. Evaluating the consequences may assist the decision-maker in learning lessons that will help her make better decisions in the future.

  • Loss aversion is the correct answer because the general notion of the "loss-aversion" theory is that if an individual is provided with two equal alternatives, one of which is presented in terms of prospective profits and the other in terms of potential losses, the former option will be chosen.

  • Loss aversion is a cognitive bias or psychological phenomenon that explains why the agony of losing is twice as powerful psychologically as the pleasure of winning.

Therefore, representativeness, cognitive bias, and overconfidence are not factors relative to an arbitrary decision distortion. So, Loss aversion is the correct response to the question.

For more information regarding arbitrary baseline, refer to the link:

brainly.com/question/11224360

allsm [11]2 years ago
3 0

Answer:

loss aversion

Explanation:

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7 0
3 years ago
Jennifer's pass-through business has total qualified business income of $100,000 and combined REIT dividends/PTP income of $20,0
svlad2 [7]

Answer:

B. $24,000

Explanation:

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3 years ago
Ford Motor Corporation is considering purchasing new technology that will increase productivity by twenty percent. If Ford Motor
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