Question

1. Face-to-face interaction in negotiations has been found to:

2. The most critical barrier to a creative decision is:

3. How can a sure loss be presented in a less unattractive way?

4. What explanation does the book provide for the fact that people are loss-averse, but still accept the sure loss of paying insurance?

5. A product’s transactional utility is contingent upon:

6. A rational valuation of an asset is based on:

7. A software company is looking to recruit a new programmer. There are two candidates for the position. The candidates’ Grade Point Averages are given, along with the number of programs each of them has written.  

1. Candidate X has a GPA of 4.0. His experience consists of writing 10 programs.
2. Candidate Y has a GPA of 3.2. His experience consists of writing 70 programs.

According to the evaluability hypothesis, which of the candidates will be preferred in case they are evaluated separately, and why?

Answer 1

1. Face-to-face interaction in negotiations has been found to:

Help overcome the inefficient outcomes predicted by game theory.

2. The most critical barrier to a creative decision is:

a narrow definition of the problem space.

3. How can a sure loss be presented in a less unattractive way?

a.Framing the loss in pseudocertain terms.

b.Framing the sure loss in probability terms, having a 100% probability.

c.Emphasizing the low degree of risk.

d.None of the above.

Ans : None of the above.

4. What explanation does the book provide for the fact that people are loss-averse, but still accept the sure loss of paying insurance?

a.The vividness of the possibility of losing a big amount of money if they are uninsured leads people to overestimate their risk.

b.The special value pseudocertainty has.

c.Social norms that favor having insurance.

d.All of the above.

Ans: All of the above.

5. A product’s transactional utility is contingent upon:

A reference price.

6. A rational valuation of an asset is based on:

What the asset is currently worth on the market.

7. A software company is looking to recruit a new programmer. There are two candidates for the position. The candidates’ Grade Point Averages are given, along with the number of programs each of them has written.  

1. Candidate X has a GPA of 4.0. His experience consists of writing 10 programs.
2. Candidate Y has a GPA of 3.2. His experience consists of writing 70 programs.

According to the evaluability hypothesis, which of the candidates will be preferred in case they are evaluated separately, and why?

Candidate X, because experience is harder to evaluate than GPA

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