What Term Best Describes an Agent Who Prefers a Risky

question 8

Multiple Choice

What term best describes an agent who prefers a risky outcome with the same expected value over a sure thing?

• A)Risk sharing
• B)Risk seeking
• C)Risk neutral
• D)Risk averse
• E)Risk premium

---

Definitions:

Classroom Conditioning

The process of using behavioral psychology principles to encourage learning and desirable behavior within a classroom setting.

Reinforce Behaviour

The process of encouraging or establishing a pattern of behavior by offering rewards or consequences.

Negative Reinforcement

A behavioral psychology principle where the removal of an unpleasant stimulus following a desired behavior increases the likelihood of that behavior being repeated in the future.

Punishment

A consequence that reduces the likelihood of a behavior being repeated, often used in behavioral conditioning.