In an Experiment on Risk Aversion and Inconsistency, a Group

question 17

Multiple Choice

In an experiment on risk aversion and inconsistency, a group of people were given the following choice: A) Lose $100 with certainty, or B) 50% chance to win $50, 50% chance to lose $200.Which of the following scenarios is most accurate and would most likely occur?

• A)A majority chose option A.Option A has a lower expected loss.
• B)A majority chose option B.Option A has a lower expected loss.
• C)A majority chose option A.Option B has a lower expected loss.
• D)A majority chose option B.Option B has a lower expected loss.
• E)Roughly equal numbers chose A and B, because they have equal expected losses.

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Definitions:

Surgical Gloves

Sterile gloves worn by medical personnel during surgical procedures to prevent contamination and maintain a sterile environment.

Nondominant Hand

The hand that is less preferred or less skilled for performing tasks, opposite to the dominant or primary hand used.

Dominant Hand

The hand that is most used for performing tasks and is generally more skilled and stronger than the other hand.

Transient Hand Flora

Microorganisms temporarily residing on the skin of the hands, which can vary and be removed with proper hand hygiene.