Consider the Following Scenario to Answer the Questions That Follow

question 105

Multiple Choice

Consider the following scenario to answer the questions that follow.
Ivett and Brenda are considering playing a game called Twenties Versus Fifties. In this game, Ivett will place a $20 bill on the table, and Brenda will place a $50 bill on the table. Both players will then toss a fair coin. If both Ivett and Brenda toss heads or if they both toss tails, Ivett wins the $70 on the table. If one woman tosses heads and the other tosses tails, Brenda wins the $70 on the table.
-For Ivett to be willing to play this game,Ivett would need to be ________.For Brenda to be willing to play this game,Brenda would need to be ________.

• A) risk averse; risk averse
• B) risk averse; risk neutral
• C) risk neutral; a risk taker
• D) a risk taker; risk neutral
• E) a risk taker; risk averse

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Definitions:

Timing-of-events Model

A statistical method used to analyze the occurrence and timing of particular events within a given timeframe, often employed in economics and social sciences to understand decision-making processes.

Trait Models

Theoretical models of personality development that focus on mental, emotional, temperamental, and behavioral traits, or attributes.

Five-factor Model

a theory that describes human personality as composed of five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Neurotic

Pertaining to a personality type characterized by anxiety, moodiness, worry, or fear.