Someone who values a lottery at less than the expected value is
A)a risk lover
B)risk neutral
C)risk averse
D)one who tends to play lots of lotteries

Question

​Someone who values a lottery at less than the expected value is
A)​a risk lover
B)risk neutral
C)risk averse
D)​one who tends to play lots of lotteries

Quizplus · Accepted Answer

Someone who values a lottery at less than its expected value is likely risk averse, as they are placing less value on the potential gains of the lottery than they are on the potential losses. Risk lovers would place a higher value on the potential gains and be more willing to take the risk, while risk-neutral individuals would weigh the expected value equally with the perceived risk. Playing multiple lotteries is not necessarily indicative of one's risk preferences.

​Someone Who Values a Lottery at Less Than the Expected

Someone Who Values a Lottery at Less Than the Expected