Neuroeconomics attributes time-inconsistency to (A) high levels of the oxytocin hormone; (B) the quasi-hyperbolic discounting of future consumption; (C) the two distinct systems (spontaneous System 1 and calculating System 2)of decision making; (D) risk aversion.
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Neuroeconomics attributes time-inconsistency to
(A) high levels of the oxytocin hormone;
(B) the quasi-hyperbolic discounting of future consumption;
(C) the two distinct systems (spontaneous System 1 and calculating System 2)of decision making;
(D) risk aversion.
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- Discuss how one is able to describe the riskiness of the decision-taker’s situation in ways which are intuitively appealing and analytically tractable.The application which provides a way of revising conditional probabilities by using available information and provisions for revising conditional probabilities with other information that is useful for management decision making is called? Select one: a. Bayes’ theorem. b. overinvolvement ratios. c. probability rules. d. empirical formula.Which of the following is FALSE regarding scenario and sensitivity analysis? Scenario analysis considers a best case (within reason) and worst case (within reason) scenario, along with a base case. Scenario analysis focuses on stand-alone risk, since it doesnt;s consider the project as a part of the larger firm. Sensitivity analysis considers that the project is one part of a larger firm Sensitivity analysis shows how changes in a single variable affects NPV or IRR Scenario analysis assumes all variables take their worst (reasonable) values simultaneously, and best (reasonable) values simultaneously.
- Consider the following decomposition of the error term: v i t = a i + u i t The first part of this error term (ai) caputres ______and the second part (uit) caputres______. time constant unobserved factors, time varying unobserved factors time varying unobserved factors, time constant unobserved factors homoskedasticity, heteroskedasticity heteroskedasticity, homoskedasticityAssumptions of rationality are violated because Choose one: A. both low-probability events and high-probability events are underanticipated. B. low-probability events are overanticipated whereas high-probability events are underanticipated. C. low-probability events are underanticipated whereas high-probability events are overanticipated. D. both low-probability events and high-probability events are overanticipated.Identify the following variables as either discrete or continuous: (a) The number of times heads comes up in 100 tosses of a coin (b) The number of accidents occurring in a specified section of a freeway (c) The weight of boxes shipped from an Amazon warehouse (d) The concentration of carbon dioxide in the air of San Diego versus time (e) Optimistic, most likely, and pessimistic estimates of salvage value
- select the correct answer from the options bellow: statement1 : A steep negative slope of a line in a sencitivity graf indicates that the NPW is not sencitive to change in the value of the corresponding variable. statement2: A scenario in the "scenario analysis "approach can only be one of three scenarios cases :the base case , the best case , and the worst case. (a) statement 1 and 2 are both false (b) statement 1 and 2 are both true (c) statement 1 is false but statement 2 is true (d) statement 1 is true but statement 2 is falseExplain probability and nonprobability samplingtechniques.State any five assumptions of the benchmark mode and highlight the weaknesses of those assumptions.
- In the case of a business with more than one product, a. it cannot use CVP analysis as such would be possible only if there is a single product. b. it can earn a higher-than-expected profit even if the total units sold was less than expectation. c. each of the products must use a separate CVP analysis. d. it can use CVP analysis only if the contribution margin percentages on each product are the same.Lutfi was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Lutfi any financial aid. Lutfi values attending Elite U at $60,000 per year. Public College costs $30,000 per year, and offered Lutfi an annual $10,000 scholarship. Lutfi values attending Public College at $40,000 per year. NoName U costs $20,000 per year, and offered Lutfi a full $20,000 annual scholarship. Lutfi values attending NoName at $15,000 per year. 24. Based on the information above, the opportunity cost of attending Elite U is?The Customs Inspection agency at international airports has developed a traveler profiling system (TPS) to detect passengers who are trying to bring more liquor into the country than is allowed by present regulations. Long-term studies indicate that 20% of the passengers are carrying more liquor than is allowed. Tests on the new TPS scheme has shown that of those carrying illegal amounts of liquor, 80% will be identified and subject to complete luggage search. In addition 20% of those not carrying illegal amounts of liquor will also be identified by TPS and subject to a complete luggage search.If a passenger is identified by TPS, what is the probability that the passenger is carrying an illegal amount of liquor? Comment on the value of this system.