Willow,a Risk-Neutral Person,is Presented the Following Gamble: Heads,she Wins $2;

question 107

Multiple Choice

Willow,a risk-neutral person,is presented the following gamble: heads,she wins $2; tails,she loses $1.Willow should

• A) take the gamble but buy insurance.
• B) be indifferent to take or not take the gamble.
• C) take the gamble.
• D) not take the gamble.
• E) randomly take or not take the gamble.

---

Definitions:

Subjective Norms

The perceived social pressure to engage or not engage in a specific behavior.

Objective Norms

Standards of behavior that are based on observable actions in a society or group, rather than subjective opinions or beliefs.

Attitude Inoculation

A technique used to make people resistant to attempts to change their attitudes, analogous to how vaccination works to prevent illness.

Counterarguments

Arguments presented to oppose or refute another argument or perspective.