Date of Award

2021

Document Type

Thesis

Degree Name

MA in Psychology

Department

Psychology

First Advisor

Dana Chesney

Second Advisor

Wilson McDermut

Abstract

This study examined how income and mathematical skills influence one’s perception of risk. The study particularly focused on overestimation as the main cognitive phenomenon that influences one’s decision-making process when thinking about purchasing an extended warranty. Two questions this study tried to shed light on 1) - Why do people buy extended warranties? 2) - How much is the risk overestimated when considering the damage and loss of common products? A total of 67 St John’s undergraduate students participated, 18 males and 49 females M(age) = 19.5 were recruited through the university research platform. Finally, I hypothesized that income and mathematical skills were correlated with an individual’s perceived risk. However, this hypothesis was not supported by the data.

Included in

Psychology Commons

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