Which of the Following Gambles Should Be Consider More Attractive

question 6

Multiple Choice

Which of the following gambles should be consider more attractive:

• A)If heads, you win $200; if tails, you lose $198
• B)If heads, you win $5; if tails, you lose $10
• C)If heads, you win $6; if tails, you lose $4
• D)If heads, you win $9; if tails, you lose $6

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Definitions:

Minimum Payment Warning Box

Information on a credit card statement that explains the consequences of only making minimum payments.

Percent Increase

A measure of how much a quantity grows over a period, expressed as a percentage of the original amount.

Available Credit

The difference between the maximum amount allowed and the actual amount owed on a credit card.

Credit Line

The maximum amount that a person can owe on a credit card at one time.