Mel Is Thinking of Going on a Cruise

question 75

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

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

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Definitions:

Nonviolence

The use of peaceful means, not force, to bring about political or social change.

Young Lords

A radical Puerto Rican activist group founded in the 1960s, focusing on social justice issues concerning Puerto Ricans and other Latinos in urban areas.

Black Panthers

A political organization founded in 1966 that aimed to challenge police brutality and racial injustice in the United States.

Puerto Rican Activists

Individuals or groups from Puerto Rico who advocate for social, political, environmental, or economic change, both within the island and in the wider Puerto Rican diaspora.