​Alan Is Offered a Gamble

question 70

Multiple Choice

​Alan is offered a gamble.Heads he wins $100,tails he wins $20.If the game costs $60,would he play?

• A)​Yes he would play since the expected value is equal to the price of the play
• B)Yes he would play since the expected value of the play is higher than the price of the play
• C)No he would not play since the price of the play is higher than the expected value
• D)​No he would not play since this is a fair bet and he is not being offered any risk premium

---

Definitions:

Dyadic Friendship

A close emotional bond between two individuals, characterized by mutual affection and a sense of alliance or partnership.

Developmental Functions

Various physiological and psychological tasks and processes that contribute to the growth or progress of an organism, particularly across different stages of life.

Intimacy

A sense of close connection between two individuals, resulting from shared feelings, thoughts, and activities.

Supportive Report

A document or feedback mechanism that provides assistance, encouragement, or information designed to bolster or uphold a particular activity, project, or situation.