Question

question 13 (multiple choice worth 5 points)
oscar wants to buy a new tv, but the price is $400, well over his budget. he receives an email offering a limited time deal for the tv and six months of a streaming service for $375. oscar decides to buy the tv. which cognitive bias did oscar demonstrate?
options: anchoring, herd mentality, loss aversion, present bias

Explanation:

Present bias refers to prioritizing immediate rewards over long - term costs. Oscar, despite the TV being over his budget, is lured by the immediate deal (limited - time, free streaming) and decides to buy it, showing present bias. Anchoring is about relying on an initial reference point (not seen here). Herd mentality is following others (not relevant). Loss aversion is avoiding losses (not the focus here).

Answer:

Present bias (the option corresponding to "Present bias" among the given choices)