Carl Has Two Choices: a 50% Chance of Winning $20

question 56

Multiple Choice

Carl has two choices: a 50% chance of winning $20 and a 50% chance of losing $20,versus a 20% chance of winning $100 and an 80% chance of losing $20.Which choice has the larger expected value?

• A) Both choices have the same expected value and thus are equally attractive.
• B) The 50%-50% choice.
• C) Both choices have negative expected values and neither should be selected.
• D) The 20%-80% choice.
• E) Both choices have the same expected value,but the 50%-50% choice is better because the chance of a payoff is greater.

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Definitions:

Aggressive

Behaving or acting in a forceful, hostile, or assertive manner, often aiming to dominate or intimidate.

Heterosexism

The belief that heterosexuality is superior to and more natural than homosexuality.

Homosexuality

Romantic attraction, sexual attraction, or sexual behavior between members of the same sex or gender.

Heterosexuality

A sexual orientation characterized by a romantic or sexual attraction towards individuals of the opposite sex.