Assignment: Anchoring and Adjustment Heuristic
Topic Description
Our estimates of values can be greatly influenced by salient values or experiences that we consciously or unconsciously use as a starting point (anchor) for our estimates. This is called the anchoring and adjustment heuristic.
Demonstration Preparation
1. Thoroughly research the topic.
2. Prepare enough of the Handouts A and B (see attached) for participants.
Demonstration Instructions
1. Distribute handouts A and B, each to half of the class. Do not make it apparent to participants that they are receiving different versions of the handout. Ask students to read over the instructions and record their estimates in the space provided.
2. Collect the completed handouts.
3. Thank your participants.
Demonstration Results Analysis and Reporting
1. In between classes, enter the estimates fromthe low and high anchor participant groups for all five items into Excel or SPSS. [CAUTION! Do not determine groups by questionnaire A or B - high/low anchors are mixed within a questionnaire - e.g., pay particular attention to Item 2!]
2. Compute the group means and standard deviations.
3. Prepare five bar graphs (one for each item) depicting the mean response for each group.
4. Conduct five independent sample t-tests (one for each item) to determine if differences between the two groups (low anchors/high anchors) are statistically significant.
5. Incorporate the results into your 5-minute PowerPoint presentation for the class debriefing. Also include the real (factual) answers to the questions you asked - participants always appreciate this! Be sure to report results in APA-format and talk about your results in consideration of the hypothesis proposed for the demonstration.
[NOTE: The discrepancy between the two groups' answers should be quite large. For example, Jacobowitz and Kahneman (1995), from whom some of the items are taken, found medians of 300 vs 1500 for the Mississippi River item; of 42,550 vs. 8000 for the Mount Everest item; and of 1000 vs. 2600 for the New York/San Francisco item(all for the A vs. B anchors, respectively).]
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.
Reference
Jacobowitz, K., & Kahneman, D. (1995), Measures of anchoring in estimation tasks, Personality and Social Psychology Bulletin, 21, 1161-1166.
Attachment:- Anchoring-and-Adjustment-Heuristic.rar