Which view states that people choose to take on risks when evaluating potential losses and avoid risks when evaluating potential gains?
A)frequency Format hypothesis
B)prospect theory
C)means-ends analysis
D)belief bias

Question

Quizplus · Accepted Answer

Prospect theory describes how individuals make decisions between choices involving uncertain probabilities. It states that people tend to be risk-averse when evaluating potential gains (thus, they would prefer a guaranteed but smaller reward), and tend to take more risks when evaluating potential losses (thus, they would prefer a chance to avoid a certain larger loss).

Which View States That People Choose to Take on Risks