Question

If prospect theory is an accurate description of human decision-making behavior, then people will show risk averse behavior when in a state of no gains or losses. a study showed risk averse behavior when in a state of no gains or losses. therefore, prospect theory is an accurate description of human decision-making behavior. the syllogism above is an example of what?

Answer 1

The syllogism is an example of deductive reasoning, concluding that prospect theory is confirmed by observed behavior. Yet, caution is advised as the validity of a theory requires evidence from multiple studies.

Step-by-step explanation:

The syllogism presented in the question is an example of deductive reasoning. In deductive reasoning, the conclusion is based on the premises that precede it; if the premises are true, then the conclusion must also be true. In this case, the argument is structured such that if prospect theory correctly describes human behavior, and a study showed said behavior under conditions of no gains or losses, then the theory is confirmed. However, one must exercise caution, since the accuracy of a theory cannot be conclusively established based on a single study or observation. Robust conclusions often require replication of findings across various circumstances and settings to account for other variables that could affect decision-making.