The framing bias makes specific predictions about how people will behave when faced with a sure course of action versus a gamble.Which of the following best describes the effects of the framing bias?
A)People are risk-averse (i.e.,preferring a sure thing)for both gains and losses.
B)People are risk-seeking (i.e.,preferring a gamble)when choosing among gains and losses.
C)People tend to be risk-averse when choosing among gains,but risk-seeking when choosing among losses.
D)People tend to be risk-seeking when choosing among gains,but risk-averse when choosing among losses.

Question

Quizplus · Accepted Answer

The framing bias predicts that people tend to be risk-averse when choosing among gains, but risk-seeking when choosing among losses. This means that people are more likely to choose a sure thing when it comes to gaining something, but are more willing to take risks when it comes to avoiding a loss. Option C describes this phenomenon accurately.

The Framing Bias Makes Specific Predictions About How People Will