People often use round prices as first offers in a negotiation. But would a more precise number

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People often use round prices as first offers in a negotiation. But would a more precise number suggest that the offer was more reasoned and informed? In an experiment, 238 adults played the role of a person selling a used car. Each adult received one of three initial offers: $2000, $1865 (a precise under-offer), and $2135 (a precise over-offer). After hearing the initial offer, each subject made a counter-offer. The difference in the initial offer and counter-offer was the largest in the group that received the $2000 offer.45 Describe how the researchers could have randomly assigned the subjects to the treatments

a. Using slips of paper.

b. Using technology.

c. Using Table D.


Table D.

Table D Random digits Line 101 19223 95034 05756 28713 96409 12531 42544 82853 102 73676 47150 99400 01927 27754 42648 82425 36290 103 45467 71709 77558 00095 32863 29485 82226 90056 104 52711 38889 93074 60227 40011 85848 48767 52573 105 95592 94007 69971 91481 60779 53791 17297 59335

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The Practice Of Statistics

ISBN: 9781319113339

6th Edition

Authors: Daren S. Starnes, Josh Tabor

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