Which of the following games might a risk-averse person be willing to play?
A)A game where she has a 60 percent chance of winning $1 and a 40 percent chance of losing $1.
B)A game where she has a 70 percent chance of winning $1 and a 30 percent chance of losing $1.
C)Both A and B.
D)Neither A nor B.

Question

Quizplus · Accepted Answer

A risk-averse person prefers games with a higher probability of winning, even if the payout is smaller. In both games A and B, the person has a higher probability of winning than losing, so they would be willing to play either game.

Which of the Following Games Might a Risk-Averse Person Be