Suppose you are offered a gamble in which you win $1,000 1/3 of the time but lose $800 2/3 of the time. If you are risk lover will you take the gamble?
What will your expected payoff be?

Question

Suppose you are offered a gamble in which you win $1,000 1/3 of the time but lose $800 2/3 of the time. If you are risk lover will you take the gamble?
 What will your expected payoff be?

Quizplus · Accepted Answer

The Answer of Suppose you are offered a gamble in which you win $1,000 1/3 of the time but lose $800 2/3 of the time. If you are risk lover will you take the gamble?
 What will your expected payoff be?

Suppose You Are Offered a Gamble in Which You Win