Mel Is Thinking of Going on a Cruise

question 136

Multiple Choice

Mel is thinking of going on a cruise.Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50.According to a very reliable source,the probability of nice weather is 60% and the probability of bad weather is 40%.Trip insurance is sometimes available.If purchased,it allows travelers to delay the cruise until the weather is nice.
A gamble that offers a 1% chance of winning $699.93 and a 99% chance of losing $7.07 would be classified as a(n)

• A)better than fair gamble.
• B)gamble that only a risk-seeker would take.
• C)fair gamble.
• D)unfair gamble.

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Definitions:

Family Ethics

Guidelines and moral principles that govern the behavior and decisions within a family unit.

Public Policy Debates

Discussions and arguments about laws, regulations, and policies that govern collective societal behavior.

Economic Interests

Preferences or advantages individuals or groups seek to maximize in economic transactions or policy decisions.

Adult Children

Individuals who are legally adults, often considered within the context of their relationship with their parents or their adjustment to adult roles.