Peg is a contestant on a game show. At this point in the game, she can either accept $1,000 or she can throw one dart at a game board for a chance of winning $500,000. If Peg accepts the guaranteed $1,000, she is displaying __________ behavior.

Question

Quizplus · Accepted Answer

Peg is risk-adverse because she is willing to give up the chance of winning $500,000 for the guaranteed $1,000. This suggests that she prefers a guaranteed outcome over a risky one.

Peg Is a Contestant on a Game Show