A Community Is Faced with Making a Decision About a Development

question 21

Multiple Choice

A community is faced with making a decision about a development project that will bring much-needed housing and jobs. Unfortunately the development project has not factored in erosion that may affect the river that runs through town. The town is split on the decision. The certain payoff is jobs and housing. The uncertain payoff is how this development project will affect the river. Those who prefer to move ahead with the development project are considered to be

• A) risk-averse.
• B) risk-sensitive.
• C) risk-prone.
• D) Both a and c
• E) Both b and c

---

Definitions:

Colors

Visual properties perceived by the eye and brain due to the way an object reflects or emits light, often evoking psychological and emotional responses.

Signal Detection Theory

A theoretical framework used to understand how decision makers differentiate between important stimuli in the presence of noise, focusing on the ability to correctly identify signals.

Absolute Threshold

The absolute threshold is the minimum intensity of stimulus that an individual can detect at least 50% of the time.

Just Noticeable Difference

The minimum level of stimulus intensity change needed to detect a difference between two stimuli.