Bob Invests $50 in an Investment That Has a 50

question 84

Multiple Choice

Bob invests $50 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0.From this information we can conclude that Bob is NOT

• A) risk loving.
• B) risk neutral.
• C) risk averse.
• D) rational.

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Definitions:

Reinforcement

Reinforcement is a concept in behavioral psychology where a behavior is strengthened or increased by a consequence that follows it.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response.

Punishing

The act of imposing a penalty or negative consequence on an individual or group to reduce or eliminate undesirable behavior.

Misbehavior

Actions or conduct that are inappropriate or violate social norms or rules.