Marcene is trying to decide which job offer to accept and is particularly concerned about her ability to pay back her substantial student loans. The first job has a far higher salary than the second one, but the company has a very high turnover rate and most people are gone within two years. She would be able to pay back her student loans within about ten years if she took that job. The second job has a lower salary, but it is a wonderful, supportive place to work and people tend to stay there for many years. If she takes that job, she will be able to make little more than the minimum payments on her loans and it will take her well beyond ten years to pay them back. By weighing out the likelihood that she will be able pay back her loans quickly given that she takes the first or second job, she is using ____.
a. subjective utilities
b. subjective probabilities
c. conditional probabilities
d. pragmatic reasoning
Question 2
In a popular television series that involves showing a homebuyer a number of homes that, to some extent, meet their requirements (e.g., location, number of bedrooms/bathrooms, size of yard), homebuyers often review their choices and then reject one home because it fails to meet a specific requirement. They then review the remaining choices, reject one because it does not meet a particular requirement and so on, until they have picked a house. What decision-making method are they using?
a. illusory correlation
b. inductive reasoning
c. modus ponens
d. elimination by aspects
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