If a Gamble Has an Expected Value of $10, Then

question 6

Multiple Choice

If a gamble has an expected value of $10, then one can predict that:

• A)only risk-averse people will take the gamble.
• B)no risk-averse person will take the gamble.
• C)all risk-neutral people will take the gamble.
• D)the gamble never pays out more than $10.

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Definitions:

Deindividuation

A psychological state characterized by diminished self-consciousness and decreased sense of personal responsibility, often occurring in group settings.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, often improving on simple tasks and performing poorly on complex tasks.

Shock Experiments

Psychological experiments studying reactions to distressing situations, often associated with studies on obedience and learning.

Milgram

Refers to a series of social psychology experiments conducted by Stanley Milgram, which demonstrated people's willingness to obey authority figures even when asked to perform actions conflicting with their personal conscience.