Examlex
Key Terms Instructions: Please define the following key terms. Show Who? What? Where? When? Why Important?
Apostles
Risk Aversion
a preference for certain outcomes over uncertain ones, often characterized by the avoidance of risky situations.
Expected Value
A calculated average of all possible values for a random variable, taking into account their probabilities of occurrence.
Lottery
A form of gambling involving the drawing of numbers at random for a prize, often regulated by governments.
Adverse Selection
A situation in which one party in a transaction has more information than the other, often leading to a negative outcome for the less-informed party.
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