Question

If alan is risk-averse, then he will always

a. choose not to play a game where he has a 75 percent chance of winning $5 and a 25 percent chance of losing $5.

b. choose not to play a game where he has a 50 percent chance of winning $5 and a 50 percent chance of losing $5.

c. choose to play a game where he has a 55 percent chance of winning $5 and a 45 percent chance of losing $5.

d. all of the above are correct.

Answer 1

I think the most appropriate answer would be D. Because it has a 50 percent chance of winning $X and a 50 percent chance of losing $Y.



I hope it helped you!