RMI2302 Exam 2 Practice Questions With Correct Answers.
0 view 0 purchase
Course
RMI2302
Institution
RMI2302
RMI2302 Exam 2 Practice Questions
With Correct Answers.
Incentive - answerBill's Bookstore needs to restock textbooks for the upcoming semester.
Bill, the owner, decides to offer a monetary bonus based on how many books an individual
restocks. 10 textbooks = $1 bonus. This is an example of a(n)...
RMI2302 Exam 2 Practice Questions
With Correct Answers.
Incentive - answer✔✔Bill's Bookstore needs to restock textbooks for the upcoming semester.
Bill, the owner, decides to offer a monetary bonus based on how many books an individual
restocks. 10 textbooks = $1 bonus. This is an example of a(n):
Age Bias
Positive Reinforcement
Risk/Reward
Incentive
Overestimate future risk of a similar occurrence - answer✔✔People who live through a major
disaster will likely:
Be objective in assessing future risk
Underestimate future risk of a similar occurence
Feel relieved, because lightning never strikes twice in the same location
Overestimate future risk of a similar occurrence
Subjective - answer✔✔A bias can be described by which of the following views
Objective
Subjective
Tangible
Continuis
, EXAM STUDY MATERIALS 8/7/2024 11:29 AM
True - answer✔✔Age biases occur when people in different age groups interpret information
about risk differently. T/F
Experience - answer✔✔People who have experienced a low-probability/high-consequences
event tend to overestimate its likelihood. What type of bias does this describe?
Experience
Age
Probability
Projection
Incentive - answer✔✔What motivates an individual to make perform an action?
Risk
Reward
Bias
Incentive
False - answer✔✔Individuals and organizations measure risk/return with expected utility. T/F
The trade-off between risk and reward - answer✔✔The skill of critical decision making requires
an understanding of:
State Laws
Case law
The trade-off between risk and reward
The family medical leave act
Organizational Level Incentives - answer✔✔A company has noticed employees taking a lot of
sick time off around the flu season. They are concerned with the overall health of their
employees and don't want them to catch/spread the flu. The company begins offering free flu
shots for the employee and up to 4 family members. This is an example of:
Long term cash flows are less valuable - answer✔✔As discount rates become higher:
Long term cash flows are more valuable
Long term cash flows are less valuable
The National Deficit is reduced
None of the above will occur
Discounting - answer✔✔Which of the following is a way organizations utilize opportunity cost
in their calculations?
Discounting
Estimating
Simulating
Projecting
Coercive - answer✔✔Eric must keep a B average, or else lose his starting position on the
basketball team. What type of incentive best describes this situation?
Financial
Coercive
Moral
Natural
Political incentives often increase the discount rate - answer✔✔Political incentives often do what
to the discount rate?
Political incentives often increase the discount rate
Political incentives often decrease the discount rate
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Brightstars. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
