If Alan Is Risk-Averse, Then He Will Always

question 8

Multiple Choice

If Alan is risk-averse, then he will always

• A)choose not to play a game where he has a 50 percent chance of winning $5 and a 50 percent chance of losing $5.
• B)choose not to play a game where he has a 75 percent chance of winning $5 and a 25 percent chance of losing $5.
• C)choose to play a game where he has a 55 percent chance of winning $5 and a 45 percent chance of losing $5.
• D)choose to play a game where he has a 25 percent chance of winning $5 and a 75 percent chance of losing $5.

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Definitions:

Autonomic Nervous

It refers to the part of the nervous system responsible for control of bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Parasympathetic Nervous

Part of the autonomic nervous system that promotes relaxation, digestion, and restoration of energy.

Severed Spinal Cord

A complete cut or transection of the spinal cord, resulting in a loss of communication between the brain and the body parts below the injury level, often leading to paralysis.

Knee-Jerk Response

An immediate, automatic reaction to a situation, without taking the time to think through the consequences.