Reference no: EM133126411

Recall the Linda problem by Kahneman and Tversky. They have provided a description of Linda:

"Linda is 31 years old, single, outspoken and very bright. She majored in philosophy. As a student, she was deeply concerned with issues of discrimination and social justice, and also participated in antinuclear demonstrations." (Kahneman and Tversky, 1983, p. 299)

Study participants were then asked which of two alternatives was more probable:

Linda is a bank teller (T).

Linda is a bank teller and is active in the feminist movement (T & F).

85% of study participants chose T & F as more likely.

2.a) According to Kahneman and Tversky, is this choice violating the probability theory? Yes or no?

2.b) Explain your answer in part a.

Now, let's imagine that the problem is revised in the following way:

Assume that there are 100 people who fit the Linda description provided above. How many of them do you think are:

2.c) Bank tellers? Provide your guess.

2.d) Bank tellers and active in the feminist movement? Provide your guess.

2.e) Is your choice violating the probability theory? Yes or no?

2.f) Explain your answer in part e.

2.g) How do your answer in part 2a compare to your answer in part 2e? Explain.