Given the Choice Between a Sure-Thing Option and a Gamble

question 59

Multiple Choice

Given the choice between a sure-thing option and a gamble option with the same expected payoff, a____________ person will choose gamble.

• A)risk averse
• B)risk loving
• C)risk neutral
• D)risk avoiding
• E)none of the above

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Definitions:

Radical Expression

An expression that includes a radical symbol, which indicates the root of a number.

Simplify

The process of making an expression or equation easier to work with, by reducing it to its most basic form.

Absolute Value

The distance of a number from zero on the real number line, disregarding whether it is positive or negative.

Simplify

Simplify refers to the process of making an equation, expression, or problem simpler to understand or solve, usually by reducing complexity.