solved 1. What is anchoring? Explain the social security number experiments.

1. What is anchoring? Explain the social security number experiments. Explain the number of countries from Africa in UN experiments. 2. Why do we do anchoring?3. How can anchoring impact finance? How can anchoring impact real estate? Use examples from the slides in your answers.4. What is mental accounting? Explain the lawnmower experiment. Explain the Boston Celtics example. 5. Why do you think we do mental accounting?6. Explain the House Money effect that comes from mental accounting. How does this impact financial decision making in the stock market?7. Explain the results of the experiment shown on slides 205-207. Why is this an interesting results for finance and economics?8. Explain how hormones like testosterone and cortisol can prolong bubbles and crashes.9. Can emotions move the market? Some research suggests that it can. Explain the slides 213-214. 10. What is present bias? In your answer use the military example on slides on 222-224 to explain.11. Why are we guilty of the present bias? That is, why do we give up so much in the future for something now?12. Are companies guilty of present bias? What did Graham, Harvey and Rajgopal find?13. What is a nudge? In your answer use the example of 401k’s to show that nudging can be really beneficial for people.14. Which personality type (Meyers-briggs) is most guilty of being overconfident. Which is least likely to be overconfident.15. See slide 243. Why would having a client answer this question help the investment advisors? 1.Watch this video on anchoring: https://www.youtube.com/watch?v=igv_O-azRUcAfter watching this video answer the following questions:Let’s say you are negotiating salary with your employer. According this video who should make the first offer: you or your boss? Why? (the why is the most important part)Adam Grant in the video talks about how he worked against anchoring when he leased a car. What does he say?Watch this video of Dan Ariely on mental accounting. https://www.youtube.com/watch?v=plvmigGxUZAExplain what happens when we lose a 100 dollar theatre ticket versus lose 100 dollar bill. Why do we do this? How are you guilty of mental accounting? Give a personal example if you can.In the example at Berkeley (in Lecture 2), the students had completely different responses when they were in the aroused state as compared to the unaroused state. Indeed, we are very different people when we are aroused, angry, hungry or tired (in hot states). Yet utopian finance and economics assumes that we are always in the cold state and ever in these hot states. Give an example when you have been in a hot state in which you acted much differently than normal.Watch this really short video on present bias: https://www.youtube.com/watch?v=JzKix2xWmJI Then answer the question of how you are guilty of present bias?In the video I asked you to watch on slide 230 (of Lecture 2) what did Ariely find about the nudge in organ donations in two countries?