A Risk-Averse Individual Prefers

question 95

Multiple Choice

A risk-averse individual prefers:

• A) the utility of expected income of a risky gamble to the expected utility of income of the same risky gamble.
• B) the expected utility of income of a risky gamble to the utility of expected income of the same risky gamble.
• C) outcomes with 50-50 odds to those with more divergent probabilities, no matter what the dollar outcomes.
• D) outcomes with higher probabilities assigned to more favorable outcomes, no matter what the outcomes are.
• E) outcomes with highly divergent probabilities so that one of the outcomes is almost certain.

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Definitions:

Assessment Report

A document that summarizes the findings, conclusions, and recommendations following an evaluation or assessment.

Understands

Understands refers to the ability to grasp the meaning, significance, or nature of something, such as a concept, language, or behavior.

Treatment Plans

Structured outlines developed by healthcare providers to address a patient's specific health or behavioral issues, detailing the strategies and interventions to be used.

Managed Care Companies

Organizations with the goal of reducing healthcare costs while increasing the quality of services.