Suppose One Is Offered a Gamble in Which You Win

question 72

Multiple Choice

Suppose one is offered a gamble in which you win $1,000 half the time but lose $1,000 half the time. Since in this case one is as likely to win as to lose the $1,000, the average payoff on this gamble-its expected value-is:
0) 5 ∗ $1,000 + 0.5 ∗ (-$1,000) = 0.
Under such circumstances:

• A) no one will take the gamble.
• B) risk averse individuals will take the gamble.
• C) risk lovers individuals will not take the gamble.
• D) risk neutral individuals will not take the gamble.
• E) risk lovers and risk neutral individuals may take the gamble.

---

Definitions:

Expressed Emotion

A measure of the family environment that is based on how much criticism, hostility, and emotional over-involvement are expressed towards a family member.

Emotional Over-involvement

A psychological condition where an individual becomes too emotionally invested or involved in a situation or another person's problems, often leading to stress or dysfunction in their own life.

Social Skills Deficits

Social Skills Deficits refer to the lack of necessary interpersonal abilities required for effective communication, interaction, and social functioning.

TA Theory

Short form for Transactional Analysis Theory, which is a psychological theory that explores the dynamics of social transactions and interpersonal interactions.