Pascal Is Risk-Averse While Marion Is Risk-Neutral

question 5

Multiple Choice

Pascal is risk-averse while Marion is risk-neutral. Both are confronted with the following gamble: win $5,000 with the probability of 65% or lose $9,000 with a probability of 35%. One can predict that:

• A)both might accept the gamble.
• B)only Pascal will accept the gamble.
• C)only Marion will accept the gamble.
• D)neither will accept the gamble.

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Definitions:

Counterconditioning

A behavior therapy technique involving the conditioning of an unwanted behavior or response to a stimulus into a desired behavior by association with a positive action or outcome.

Transference

The process by which emotions, desires, and expectations originally associated with one person are unconsciously redirected towards another person.

Resistance

The refusal to accept or comply with something; the attempt to prevent something by action or argument.

Unconscious

Part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.