Prospect Theory Explains ______

question 54

Multiple Choice

Prospect theory explains ______.

• A) why individuals always make rational decisions
• B) why individuals sometimes make irrational decisions
• C) people put more emphasis on losses than gains
• D) the rational decision-making model

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Definitions:

Unknown Quantity

A variable or value within a mathematical problem or equation that has not yet been determined or identified.

Proportion

A constituent, allotment, or figure regarded in context with its aggregate.

Unknown Quantity

A variable or value in mathematics and algebra that is not known or specified.

Proportion

A mathematical concept indicating the relationship between parts of a whole or between different quantities expressed as a fraction or ratio.