If Given the Opportunity to Bet on a Coin Flip

question 6

Multiple Choice

If given the opportunity to bet on a coin flip that would pay them $10 if they are right and cost them $8 if they are wrong, most people _____ take the bet because _____ .

• A)will; the odds are stacked in their favor
• B)will; the majority of people like to gamble
• C)will not; they will lose 50 percent of the time
• D)will not; losing $8 feels worse than winning $10

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Definitions:

Sales

The activities involved in selling products or services, ultimately generating revenue for a business.

Decentralization

Assignment of decision-making rights to lower operating levels of an organization. Decreases cost of transferring specific knowledge needed to make decisions, but increases the cost of controlling behavior.

Cereal

A grain or edible seed typically processed and consumed as part of a meal, especially breakfast, or used to produce various food products.