Your friend wants to make a bet with you, and he gives you two options.If you choose Option 1, you will have an 80 percent chance of winning $100, but a 20 percent chance of losing $100.If you choose Option 2, you are guaranteed to win $5.If you are like most people when it comes to making decisions, you would probably choose because of .
A)Option 1; the availability heuristic
B)Option 1; confirmation bias
C)Option 2: loss aversion
D)Option 2: anchoring

Question

Quizplus · Accepted Answer

C) Option 2: loss aversion. Most people tend to prefer avoiding losses over acquiring equivalent gains, a principle known as loss aversion.

Your Friend Wants to Make a Bet with You, and He