Okay. Clear your desk and pull out a pencil. This post starts with a pop quiz. For each of the following scenarios, answer 1 or 2.

Scenario 1.
You’re on vacation in Florida. You have reserved a spot on a snorkeling expedition. But when the big day arrives, you wake up and realize that you have a cold. This cold won’t make it impossible for you to make the trip, but it will definitely make for unpleasant snorkeling. You would prefer to stay at the hotel and read a book. But you’ve already paid $150 for this snorkeling trip, and the money is non-refundable. Do you:

  1. Spend a miserable day snorkeling so as not to waste the $150, or
  2. Spend a relatively pleasant day by the pool and forget about the fact that you spent $150 that you will never seen any benefit from?
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