A Risk Averse Individual Would

question 80

Multiple Choice

A risk averse individual would

• A)prefer $5 with certainty than a risky prospect with the expected of $5.
• B)prefer a risky prospect with an expected value of $5 to a certain amount of $5.
• C)be indifferent between a risky prospect with an expect value of $5 to a certain amount of $5.
• D)prefer $5 with certainty than a risky prospect with the expected of $50.

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Definitions:

Advertising

The activity or profession of producing advertisements for commercial products or services to inform or attract potential customers.

Informational Appeal

Used in a promotion to help consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage them to evaluate the brand favorably on the basis of the key benefits it provides.

Laptop Computers

Portable personal computers designed for mobile use, integrating most components of a desktop computer, including a display, keyboard, and a pointing device.

Tangible Features

Refers to the physical characteristics of a product that can be seen, touched, and measured.