Asked by Brittany Schrimsher on Apr 27, 2024
Verified
When people are seeking gains,what is their likelihood of making risky decisions,compared to when they are attempting to cut their losses
A) equally likely in both situations
B) less likely when seeking gains
C) more likely when seeking gains
D) less likely when seeking gains if female, but more likely if male
Risky Decisions
The process of making choices that involve uncertainty about the outcomes, where some possible outcomes have negative consequences.
Seeking Gains
The process of aiming to increase one's assets, knowledge, or status.
Cut Losses
The strategy of selling off or abandoning an asset or investment to prevent further loss or devaluation.
- Comprehend how cognitive biases and heuristics affect our decision-making processes and perceptions.
- Understand the function of probability and risk evaluation in the process of making decisions.
Verified Answer
SM
saiful malikMay 01, 2024
Final Answer :
B
Explanation :
When people are seeking gains, they tend to be risk-averse, preferring safer options that ensure some level of gain. In contrast, when attempting to cut losses, individuals are more likely to take risks in hopes of offsetting their losses, a phenomenon described by prospect theory.
Learning Objectives
- Comprehend how cognitive biases and heuristics affect our decision-making processes and perceptions.
- Understand the function of probability and risk evaluation in the process of making decisions.
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