answer each question and explain why

Please answer each question. Explain why you chose the answer that you did by drawing on the concept of heuristics and biases in decision making in Chapter 15. Please reference the relevant concepts and theories in your response.

1. Fortune magazine ranked the following 10 corporations as being among the 500 largest United States–based firms according to sales volume for 2013:

a. Group A: McDonald’s, Visa, Amazon, Target, Coca-Cola

b. Group B: Berkshire Hathaway, General Electric, Valero, McKesson, Hewlett-Packard

Which group would you say had the larger total sales volume, A or B? By what percentage (10 percent, 50 percent, 100 percent)?

2. The best student in your introductory MBA class this past semester writes poetry and is rather shy and small in stature. What was the student’s undergraduate major: Chinese studies or psychology?

3. Which of the following causes more deaths in the United States each year?

a. Stomach cancer

b. Motor vehicle accidents

4. Which would you choose?

a. A sure gain of $240.

b. A 25 percent chance of winning $1,000 and a 75 percent chance of winning nothing.

The assignment must be at least 1 ½ pages ( around 400-500 words) . Please remember to number each response.

Read chapter 15 file upload below for anwser those question.

20190429211236chapter_15___decision_making

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Question 1

Group B recorded a higher number of sales. The total numbers of sales for this group were $127.6 billion. Group A, on the other hand, had sales amounting to $22.1 billion. However, according to heuristics concepts, there are common biases that would lead to the arrival of a different answer. According to the availability heuristic, group A is well known hence a person can easily suggest that group A companies had larger sales leading to biases (Belton, 2017). Group B companies are industrial firms hence they are less known. Group B companies had sales which exceeded by 500 %. This was 5 times the sales recorded by group A.

(525 words)