People who are risk averse
A) prefer a sure thing over a gamble with a higher expected value.
B) choose the outcome with the highest expected value.
C) choose the outcome with the lowest expected value.
D) prefer gambles with lower expected values but potentially higher winnings over a sure thing.
E) do not partake in any risky activities.

Question

Quizplus · Accepted Answer

People who are risk averse prefer a sure thing over a gamble with a higher expected value. They are willing to give up potentially higher winnings in exchange for a higher probability of success.

People Who Are Risk Averse