If an Individual Prefers a Risky Prospect to a Sure

question 55

Multiple Choice

If an individual prefers a risky prospect to a sure prospect then:

• A)the two prospects must have the same expected value.
• B)the risky prospect has a higher expected utility.
• C)the individual is irrational.
• D)the individual is risk lover.

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Definitions:

Cerebral Cortex

The outermost layer of the brain, vital for cognitive functions including reasoning, language, and memory.

Language Functions

The roles that language serves in communication, such as informational, expressive, directive, and social functions.

Linguistic Ability

The capacity to use language effectively, including understanding, expressing, and manipulating words in context.

Perceptual Set

A psychological framework or expectation that predisposes an individual to perceive information in a particular way.