________ describes the situation when someone decides to continue to follow a failing course of action.
A. The fundamental attribution error
B. The gambler's fallacy
C. The ratio bias effect
D. The self-serving bias
E. An escalation of commitment
Answer: E
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The umbrella term to describe slander and libel is ________
A) freedom of expression B) obscenity C) defamation D) tastelessness
Which organizational pattern uses a five-step process to persuade an audience?
a. Monroe’s Motivated Sequence b. problem-cause-solution c. topical d. chronological
Scenario 16.2 Use the following to answer the questions. The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves
over 1.9 million bank accounts. Refer to Scenario 16.2. If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2% of its total annual sales to advertising. However, one problem with this method is that A. it makes the bookkeeping too difficult. B. it is tied too closely to sales forecasts. C. a sales decline leads to an increase in the advertising appropriation. D. a drop in sales would cause a drop in the advertising budget. E. competitors may have different advertising objectives.
The cash flows for two projects, A and B, are shown in the table, below. Notice that Project A has a life of 3 years and Project B has a 2 year life. Use the replacement chain approach to calculate the NPV of each project over a common life-span
What is the NPV of the Project A chain minus the NPV of the Project B chain? Assume that the cost of capital is 8%. Project CFs Project CFs Time A B 0 -150 -104 1 66 66 2 66 66 3 66 0 NPV $20.09 $13.70 A) $0.45 B) $0.47 C) $0.49 D) $0.50 E) $0.52