Which of the following games might a risk-averse person play?
A)a game where she has a 70 percent chance of winning $1 and a 30 percent chance of losing $1
B)a game where she has a 60 percent chance of winning $100 and a 40 percent chance of losing $100
C)a game where she has a 60 percent chance of winning $2 and a 40 percent chance of losing $1
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A risk-averse person is someone who prefers to avoid risk and uncertainty. They are more likely to choose options that have a lower chance of losing money, even if the potential reward is also lower. In this case, all of the games have a higher chance of winning than losing, so a risk-averse person would be most likely to choose all of them.

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