A Fair Gamble Is One in Which the

question 89

Multiple Choice

A fair gamble is one in which the

• A) probabilities of winning or losing are each 50%.
• B) expected value is greater than zero.
• C) outcomes of winning or losing are the same.
• D) expected value is zero.
• E) probabilities of winning or losing add up to one.

---

Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Risky Shift

Tendency for group discussion to produce group decisions that are more risky than the mean of members’ pre-discussion opinions, but only if the pre-discussion mean already favoured risk.

Pre-Discussion

A phase prior to formal discussions where initial opinions or subjects may be informally exchanged.

Groupthink

A psychological phenomenon where the desire for harmony and conformity in a group leads to irrational and dysfunctional decision-making outcomes.