Prospect Theory Assumes That People Are

question 6

Multiple Choice

Prospect theory assumes that people are:

• A)more willing to take risks when evaluating gains than they are when evaluating losses.
• B)more willing to take risks when evaluating losses than they are when evaluating gains.
• C)equally willing to take risks to achieve gains and avoid losses.
• D)unwilling to take risks either to achieve gains or to avoid losses.

---

Definitions:

Puffing

An exaggerated or hyperbolic statement made by a seller about the quality of goods, often considered a subjective opinion rather than a factual claim.

Exaggerations

Statements or claims not supported by facts, or the act of making something seem greater or more important than it actually is.

Salesperson

is an individual who sells goods or services, often working on behalf of a company, and is typically compensated via salary, commission, or a combination of both.

Waive Warranties

The act of relinquishing one's right to enforce certain guarantees about the quality or functionality of a product or service.