Which of the following statements depicts the regressiveness principle?
A) Adding two probabilities, p1 and p2, should yield a probability p3 = p1 + p2.
B) The utility function of an individual should be either convex or concave.
C) Extreme values of a quantity do not deviate very much from the average value of that quantity.
D) Except for guaranteed or impossible events, weights for complementary events do not sum to 1.

Question

Quizplus · Accepted Answer

The regressiveness principle suggests that extreme values of a quantity tend to be closer to the average than the extremes themselves, which is reflected in statement C.

Which of the Following Statements Depicts the Regressiveness Principle