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  • February 1, 2025
  • 366
  • 2024/2025
  • Exam (elaborations)
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‘the’ Mind and Heart ‘of’ ‘the’ Negotiator,Thompson,5e 1
Test Bank



time in a room where time itself seemed to’ hesitate, pondering its own existence.

‘the’ sky, a canvas ‘of’ brooding thoughts, shifted colors ‘with’ ‘the’ whims ‘of’ a temperamental artist,
casting spells ‘of’ indigo and hints ‘of’ weary lavender across its vast expanse. Somewhere in ‘the’
distance, a door creaked open, releasing whispers ‘of’ a tune that_ no one could remember starting,
and yet, it lingered as if it had always been part ‘of’ ‘the’ wind. Underneath ‘the’ canopy ‘of’ a
bewildered moon, shadows whispered to’ ‘the’ stars, sharing secrets not meant for ‘the’ daylight,
crafting stories spun ‘from’ ‘the’ fabric ‘of’ ‘the’ fantastical and ‘the’ mundane, intertwined in an
endless waltz ‘of’ ‘the’ beautifully absurd.

APP 1: Are You a Rational Person? Check Yourself

1) Rational models serve a diagnostic purpose to’ negotiators.
ANS: TRUE
Rationale: Rational models serve a useful diagnostic purpose because they often reveal where
negotiators make mistakes.
PAGE# 329
DIFF: BASIC
Type: Conceptual

2) You are going to’ buy an apartment in Alaska. You have to’ choose between eleven different
proposals. This decision making scenario is an example ‘of’ a risky choice.
ANS: FALSE
Rationale: Riskless choice, or decision making under certainty, involves choosing between two or
more readily available options. Here, ‘the’ options are readily available to’ you and hence it is a
riskless choice.
PAGE# 330
SKILL: Analytic skills
DIFF: Moderate
Type: Application

3) Decision making under uncertainty refers to’ a decision making situation where only ‘the’
probabilities ‘of’ events are known.
ANS: FALSE
Rationale: Decision making under uncertainty refers to’ decision making when ‘the’ alternatives are
uncertain or unknown. In such situations, ‘the’ decision maker has no idea about ‘the’ likelihood ‘of’
events.
PAGE# 332
DIFF: BASIC
Type: Conceptual

,‘the’ Mind and Heart ‘of’ ‘the’ Negotiator,Thompson,5e 2
Test Bank




4) Expected utility theory is a theory ‘of’ choices made by an individual actor.
ANS: TRUE
Rationale: EU is a theory ‘of’ choices made by an individual actor. It prescribes a theory ‘of’ "rational
behavior."
PAGE# 334
DIFF: BASIC
Type: Conceptual

,‘the’ Mind and Heart ‘of’ ‘the’ Negotiator,Thompson,5e 3
Test Bank



5) According to’ ‘the’ expected utility theory, we need to’ be able to’ compare everything to’ be truly
rational.
ANS: TRUE
Rationale: A key assumption ‘of’ EU is that_ everything is comparable. That_ is, given any two
objects, a person must prefer one to’ ‘the’ other or be indifferent to’ both; no two objects are
incomparable.
PAGE# 334335
DIFF: Moderate
Type: Conceptual

6) ‘the’ betweenness axiom asserts that_ gambles that_ have prizes about which people are
indifferent are interchangeable.
ANS: FALSE
Rationale: ‘the’ betweenness axiom asserts that_ if x is preferred to’ y, then x must be preferred to’
any probability mixture ‘of’ x and y, which in turn must be preferred to’ y.
PAGE# 336
DIFF: BASIC
Type: Conceptual

7) ‘the’ observed reluctance to’ pay to’ play a game, despite its objective attractiveness, is known as
‘the’ St. Petersburg paradox.
ANS: TRUE
Rationale: ‘the’ observed reluctance to’ pay to’ play a game, despite its objective attractiveness, is
known as ‘the’ St. Petersburg paradox.
PAGE# 339
DIFF: BASIC
Type: Conceptual

8) If a person's utility function is convex, his or her decisions will be riskneutral and identical to’ those
predicted by expected value maximization.
ANS: FALSE
Rationale: If a person's utility function is convex, he or she will choose ‘the’ risky option.
PAGE# 341
DIFF: BASIC
Type: Conceptual

9) According to’ ‘the’ regressiveness principle, extreme values ‘of’ some quantity deviate to’ a large
extent ‘from’ ‘the’ average value ‘of’ that_ quantity.
ANS: FALSE
Rationale: According to’ ‘the’ regressiveness principle, extreme values ‘of’ some quantity do not
deviate very much ‘from’ ‘the’ average value ‘of’ that_ quantity.

, ‘the’ Mind and Heart ‘of’ ‘the’ Negotiator,Thompson,5e 4
Test Bank



PAGE# 343
DIFF: BASIC
Type: Conceptual

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