According to Prospect Theory,would a Person Rather Gamble $2 with the Possibility

question 54

Multiple Choice

According to prospect theory,would a person rather gamble $2 with the possibility of winning $4,or gamble 50 cents with the possibility of winning $1? Why?

• A) $2, because the person could possibly win a greater amount of money
• B) $2, because the person will ignore the possibility of losing more money
• C) 50 cents, because the person can lose only a small amount of money
• D) 50 cents, because the person will not mind being able to win only a little money

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.