In which of the following games is it conceivable that a risk-averse person might be willing to play?
A) a game where she has a 50 percent chance of winning $1 and a 50 percent chance of losing $1
B) a game where she has a 50 percent chance of winning $100 and a 50 percent chance of losing $100
C) a game where she has a 60 percent chance of winning $1 and a 40 percent chance of losing $1
D) a game where she has a 40 percent chance of winning $1 and a 60 percent chance of losing $1

Question

Quizplus · Accepted Answer

A risk-averse person is less likely to take risks and would prefer the option with a higher probability of winning and a lower probability of losing. In option C, there is a higher chance of winning (60 percent) compared to losing (40 percent), making it a more favorable option for a risk-averse person. Options A, B, and D have a more balanced outcome of winning and losing, making them less desirable for a risk-averse person.

In Which of the Following Games Is It Conceivable That