You run an experiment where you ask students how much they think the median BYU econ major will make in their first job after graduation. You randomly separate students into a (A) control group students are asked: "Do you believe median earnings are above or below $80,000?" before asking them what they think the median salary will be and (b) . a treatment group where students are asked: "Do you believe median earnings are above or below $40,000?" before asking them what they think the median salary will be. - What does the standard model predict about how the treatment in- dividual will affect their answer about econ major salaries? - What does anchoring theory predict? - You observe that the control group reports an expected median earn- ings of $60.000 the treatment group reports expected median earn- ings of $52,000. What is your estimated anchoring coefficient a if f(A) = A? - What earnings level would you expect cadets to report if you an- chored them with the question: "Do you believe the expected earn- ings will be above or below $150,000?" - How would you describe the three potential psychological sources of anchoring?You run an experiment where you ask students how much they think the median BYU econ major will make in their first job after graduation. You randomly separate students into a (A) control group students are asked: "Do you believe median earnings are above or below $80,000?" before asking them what they think the median salary will be and (b) . a treatment group where students are asked: "Do you believe median earnings are above or below $40,000?" before asking them what they think the median salary will be. - What does the standard model predict about how the treatment in- dividual will affect their answer about econ major salaries? - What does anchoring theory predict? - You observe that the control group reports an expected median earn- ings of $60.000 the treatment group reports expected median earn- ings of $52,000. What is your estimated anchoring coefficient a if f(A) = A? - What earnings level would you expect cadets to report if you an- chored them with the question: "Do you believe the expected earn- ings will be above or below $150,000?" - How would you describe the three potential psychological sources of anchoring