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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. How is the decision construction of broad framing defined by the author?
(a) A single decision with four options.
(b) Two simple decisions, considered separately.
(c) A single decision with two options.
(d) Four simple decisions, considered separately.

2. In one example provided by the author in Chapter 31, he establishes two sports fans going to a game while facing a blizzard. One bought his ticket and the other one got his for free from a friend. The author asserts that the fan who paid is more likely to drive. What provides the explanation for this assertion?
(a) Mental accounting.
(b) Narrative fallacy.
(c) The availability cascade.
(d) An anchoring effect.

3. What psychologist conduted an experiment wherein he recruited fans of professional basketball and elicited judgments concerning the winner of the NBA playoffs?
(a) Shane Frederick.
(b) Craig Fox.
(c) Nassim Taleb.
(d) Larry Jacoby.

4. In what branch of the military did the author complete service?
(a) British Navy.
(b) U.S. Marines.
(c) Israeli Army.
(d) French Navy.

5. Who is the finance professor at U.C. Berkeley who created a study wherein he examined the trading records of 10,000 brokerage accounts of individual investors over a seven-year period?
(a) Baruch Fischhoff.
(b) Terry Odean.
(c) Jim Collins.
(d) Malcolm Gladwell.

Short Answer Questions

1. How are decision weights and probabilities regarded in prospect theory?

2. Who was the founder of psychophysics?

3. What term does the author apply to the idea that once you have accepted a theory and used it as a tool in your thinking, it is extremely difficult to notice its flaws?

4. One of the decision problems that Kahneman and Tversky examined (as discussed in Chapter 25) was whether one would choose a coin toss in which the winner wins $100 or what?

5. In discussing vacations, the author presents the assertion that resorts offer what?

Short Essay Questions

1. What two different meanings does the author attribute to the word utility in Chapter 35?

2. How does the author assert terrorism works in Chapter 30?

3. Why does the author credit Virginia Apgar with saving the lives of many infants?

4. What did Tversky and Kahneman conclude in their study of pain during medical procedures?

5. What does "hedonimeter" refer to?

6. What is hindsight bias?

7. What findings were published in "Money, Kisses, and Electric Shocks: On the Affective Psychology of Risk"?

8. What is the initial gamble that Paul Samuelson famously asked a friend?

9. What is the expected utility hypothesis?

10. How is evaluation defined as a principle of prospect theory?

(see the answer keys)

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