People Who Are Risk Neutral

question 84

Multiple Choice

People who are risk neutral

• A) prefer a sure thing over a gamble with a higher expected value.
• B) choose the outcome with the highest expected value.
• C) choose the outcome with the lowest expected value.
• D) prefer gambles with lower expected values but potentially higher winnings over a sure thing.
• E) do not partake in any risky activities.

---

Definitions:

Simple Random Sample

A subset of a statistical population in which each member has an equal probability of being chosen.

Faculty Members

Individuals who are members of the teaching or academic staff at an educational institution.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers in the set and dividing by the count of those numbers.

Caffeinated Beverages

Drinks that contain caffeine, a stimulant, which can temporarily ward off drowsiness and restore alertness.