Question: 1. What is anchoring? Explain the social security number experiments. Explain the number of countries from Africa in UN experiments. 1b. Why do we do

1. What is anchoring? Explain the social security number experiments. Explain the number of countries from Africa in UN experiments.

1b. Why do we do anchoring?

1c. How can anchoring impact finance? How can anchoring impact real estate? Use examples from the slides in your answers.

1c. What is mental accounting? Explain the lawnmower experiment. Explain the Boston Celtics example.

2. Why do you think we do mental accounting?

3. Explain the House Money effect that comes from mental accounting. How does this impact financial decision making in the stock market?

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