In an Experiment on Risk Aversion and Inconsistency, a Group

question 33

Multiple Choice

In an experiment on risk aversion and inconsistency, a group of people were given the option to accept or reject the following gamble: 50% chance to win $150, 50% chance to lose $100.Which of the following scenarios is most accurate and would most likely occur?

• A)A majority accepted the gamble.People who chose the gamble can expect to gain from it.
• B)A majority rejected the gamble.People who chose the gamble can expect to gain from it.
• C)A majority accepted the gamble.People who chose the gamble can expect to lose from it.
• D)A majority rejected the gamble.People who chose the gamble can expect to lose from it.
• E)People were evenly split between accepting and rejecting the gamble.Expected winnings from the gamble are zero.

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Definitions:

Positive Norms

Expected behaviors within a group that contribute to a positive and constructive environment.

Team Cohesiveness

The extent to which team members are attracted to the team and motivated to remain in it, characterized by strong bonds, commitment to common goals, and mutual support.

Leaders

Individuals who influence, guide, or direct others within an organization or group towards achieving a collective goal.

Norm

A behavioural expectation, rule, or standard to be followed by team members.