Imagine the following scenario: You are offered the chance to win $1,000,but in order to win you have to stick your hand into a tank of fish that you cannot see.There is a 25% chance that the tank contains piranhas that will remove the flesh from your hand.According to the __________ theory of decision making,you are not likely to take the risk of injury just to win the cool grand.
A) avoidance
B) rationality
C) prospect
D) self-preservation

Question

Quizplus · Accepted Answer

According to the prospect theory of decision making, individuals evaluate potential losses and gains, where losses are often weighed more heavily than gains. This theory suggests you are less likely to take the risk of injury (a significant loss) for the chance to win money (a gain).

Imagine the Following Scenario: You Are Offered the Chance to Win