Two Slot Machines Offer to Double Your Money 3 Times

question 103

Multiple Choice

Two slot machines offer to double your money 3 times out of 5.Machine A takes $10 bets and Machine B takes $100 bets on each occasion.A risk-averse investor prefers to bet on:

• A)machine A
• B)machine B
• C)does not matter
• D)none of the above

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Definitions:

Estate

The total of all the property, assets, and liabilities of an individual at the time of their death, or a large piece of landed property.

Alimony

Financial support paid to a former spouse after a marriage has been terminated. The alimony may be permanent or temporary, rehabilitative.

Common Law Marriage

A marriage that is formed by mutual consent and without a marriage license or ceremony. The couple must be eligible to marry, have a present and continuing agreement to be a couple, live together as a couple, and hold themselves out to the public as a couple. Many states do not recognize common law marriages.

Cohabitate

The act of living together in a shared residence, typically in a romantic or familial relationship, without being married.