Gog is offered the following wager by Magog. For a payment of $10, Gog can blindfolded draw a single marble from an urn containing ten marbles. Eight marbles are green and two are red. If Gog selects the green marble, he wins $500. If he draws a red marble, he loses $125. Which of the following statements is correct?
A) If Gog is risk averse, he will accept this fair gamble.
B) If Gog is risk averse, he will not accept this fair gamble.
C) If Gog is risk neutral, he will accept this unfair gamble.
D) If Gog is risk loving, he may or may not accept this fair gamble.
E) If Gog is risk loving, he may or may not accept this unfair gamble.

Question

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The Answer of Gog is offered the following wager by Magog. For a payment of $10, Gog can blindfolded draw a single marble from an urn containing ten marbles. Eight marbles are green and two are red. If Gog selects the green marble, he wins $500. If he draws a red marble, he loses $125. Which of the following statements is correct?
A) If Gog is risk averse, he will accept this fair gamble.
B) If Gog is risk averse, he will not accept this fair gamble.
C) If Gog is risk neutral, he will accept this unfair gamble.
D) If Gog is risk loving, he may or may not accept this fair gamble.
E) If Gog is risk loving, he may or may not accept this unfair gamble.

Gog Is Offered the Following Wager by Magog