If a researcher wants to conduct a study on the framing effect, which of the following would be the most likely topic for the study?
a. How do math undergraduates and math professors differ in their confidence about decisions?
b. How long do people maintain their commitment to an unsatisfactory decision?
c. Under what circumstances do people overestimate their ability to predict events that have already occurred?
d. Should a product that costs 300 and is marked down to 200 be advertised as only 200 or 100 off?
Question 2
According to the research on prospect theory,
a. people generally avoid risks.
b. when the situation involves possible losses, people usually seek risks.
c. most people can overcome the framing effect because they naturally focus on the risks involved.
d. people consistently make decisions that are correct from a statistical point of view.
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