People who forgo a high expected value to avoid a disaster with a low probability are
A) risk takers.
B) risk averters.
C) risk calculators.
D) risk predictors.

Question

Quizplus · Accepted Answer

People who forgo a high expected value to avoid a disaster with a low probability are known as risk averters. They prioritize avoiding potential losses over maximizing potential gains. This behavior is often seen in individuals who prefer a guaranteed outcome over one that has a higher risk of failure, even if the potential reward is higher.

People Who Forgo a High Expected Value to Avoid a Disaster