Question

(01.01 mc) 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 free of a streaming service for $375. oscar decides to buy the tv. which cognitive bias did oscar demonstrate? anchoring herd mentality loss aversion present bias

Explanation:

Anchoring bias occurs when people rely too much on an initial piece of information (the "anchor") when making decisions. Here, the initial high - price of $400 acts as an anchor. When Oscar sees the lower price of $375 with an added bonus, he is influenced by the initial high price and decides to buy. Herd mentality is about following the crowd, loss aversion is about avoiding losses, and present bias is about preferring immediate rewards over long - term ones. None of these apply as directly as anchoring in this case.

Answer:

Anchoring