The fanning-out pattern typical of selling price x subjective probability graphs of behavioral research on the expected utility model indicates that subjects determined selling price by multiplying ________________.

Question

Quizplus · Accepted Answer

The fanning-out pattern suggests that subjects are multiplying the probability of an outcome occurring by the payoff associated with that outcome to determine the selling price. This is consistent with the expected utility model, as individuals are assumed to make decisions based on the expected value of the outcomes. Therefore, the correct choice is B - probability and payoff.

The Fanning-Out Pattern Typical of Selling Price X Subjective Probability