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.

---

Definitions:

Chicago School

An economic school of thought originating from the University of Chicago, emphasizing free-market principles and the reduction of government intervention in the economy.

Urban Culture

The characteristic way of life of urban populations, including their cultural forms, expressions, and experiences unique to cities.

Urbanism

A way of life that, according to Louis Wirth, involves increased tolerance but also emotional withdrawal and specialized, impersonal, and self-interested interaction.

Commodified

The process of treating something that cannot be owned or was not previously considered as such, as a product that can be bought, sold, or traded in the marketplace.