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Title: If you are offered a gamble in which you win 500 dollars 3/8 of the time and you lose 500 dollars 5/ Post by: Chako on Mar 11, 2016 If you are offered a gamble in which you win 500 dollars 3/8 of the time and you lose 500 dollars 5/8 of the time, what is your expected payoff and your behavior given that you are a risk-lover?
A) -$125, it is unclear what you would do without further information B) $500, take the gamble C) -$125, take the gamble D) -$125, decline the gamble E) $500, decline the gamble Title: Re: If you are offered a gamble in which you win 500 dollars 3/8 of the time and you lose 500 dollar Post by: machukian on Apr 16, 2016 Content hidden
Title: Re: If you are offered a gamble in which you win 500 dollars 3/8 of the time and you lose 500 dollars 5/ Post by: Chako on Apr 25, 2016 Makes a lot of sense, and you're right.. I appreciate the input
Title: Re: If you are offered a gamble in which you win 500 dollars 3/8 of the time and you lose 500 dollars 5/ Post by: machukian on May 11, 2016 Don't forget to vote my answer as best :nerd:
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