Option a Provides $9,000 with Probability 50 Percent or $11,000

question 26

Multiple Choice

Option A provides $9,000 with probability 50 percent or $11,000 with probability 50 percent. Option B provides $8,000 with probability 50 percent or $12,000 with probability 50 percent. For most people the cost of risk associated with B is

• A) less than that associated with A.
• B) the same as that associated with A.
• C) exactly twice that associated with A.
• D) more than twice that associated with A.

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Definitions:

Looking-glass Self

A social psychological concept stating that a person's self grows out of society's interpersonal interactions and the perceptions of others.

Petty Theft

The act of stealing items of relatively low value; considered a minor crime or misdemeanor.

Reflection

The process of intentionally thinking about one's actions, experiences, beliefs, and values to gain insights or learning.

Expectancy-value Theory

A psychological theory that explains behavior as driven by the belief that one's effort will lead to desired outcomes and the value of those outcomes to the individual.