The Framing Bias Makes Specific Predictions About How People Will

question 27

Multiple Choice

The framing bias makes specific predictions about how people will behave when faced with a sure course of action versus a gamble.Which of the following best describes the effects of the framing bias?

• A)People are risk-averse (i.e.,preferring a sure thing)for both gains and losses.
• B)People are risk-seeking (i.e.,preferring a gamble)when choosing among gains and losses.
• C)People tend to be risk-averse when choosing among gains,but risk-seeking when choosing among losses.
• D)People tend to be risk-seeking when choosing among gains,but risk-averse when choosing among losses.

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Definitions:

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