Find the odd sentence out:
[1] Behavioral economists argue that individuals frequently suffer from the 'sunk cost fallacy' in major financial commitments.
[2] Investors routinely pump additional capital into failing ventures simply because they have already invested heavily in them.
[3] Rational decision-making requires evaluating future expected costs and benefits rather than irrecoverable historical outlays.
[4] High-frequency algorithmic trading firms deploy microwave communication towers to execute market orders in microseconds.
Answer and explanation
Correct answer: C. Sentence 4
- Step 1: Sentences 1, 2, and 3 expound on the psychological sunk cost fallacy, detailing irrational commitment to failing endeavors due to past unrecoverable investments.
- Step 2: Sentence 4 shifts to microwave communication hardware used by high-frequency algorithmic trading firms rather than psychological heuristics in decision theory.
- Step 3: Consequently, Sentence 4 is the odd sentence out.
Answer
Sentence 4.
Why not the others: Sentence 1 defines the psychological premise of the sunk cost fallacy; Sentence 2 provides the real-world behavioral example of throwing good money after bad; Sentence 3 contrasts the fallacy with normative rational decision theory.
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