This Is Gamble 1: Do You Prefer a Sure Win

question 24

Multiple Choice

This is gamble 1: do you prefer a sure win of $5 or a 75% chance to win $8? This is gamble 2: in the first stage, you have an 80% chance to end the game with no prize and a 20% chance to move to the second stage. Before completing the first stage, you must select one of the following second-stage choices: do you prefer a sure win of $5 or a 75% chance to win $8? This is gamble 3: do you prefer a 20% chance to win $5 or a 15% chance to win $8? Because of framing, which two of the gambles do people tend to treat incorrectly as identical?

• A) gamble 1 and 2
• B) gamble 2 and 3
• C) gamble 1 and 3

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Definitions:

Employee Files

Organized collections of records pertaining to employees, including personal information, employment history, and performance evaluations.

Administrative Costs

Expenses related to the general operations of a business, including items like salaries of non-sales personnel, rent, utilities, and office supplies.

Employee Leasing

A staffing strategy where companies contract with a third-party to hire and manage their workforce, often to reduce administrative responsibilities.

Professional Employer Organization

A firm that provides a service under which an employer can outsource employee management tasks, such as benefits administration, payroll, and workers' compensation.