A gambler offers random individuals a chance to make a bet.A fair coin will be flipped,if it comes up heads,he will pay them $100,but if it comes up tails,they will lose $100.Given what you know about common cognitive biases,what will most individuals do and why?
A)Most people will take the bet because of the optimism bias.
B)Most people will take the bet because of belief perseverance.
C)Most people will choose not to take the bet because of belief perseverance.
D)Most people will choose not to take the bet because of loss aversion.

Question

Quizplus · Accepted Answer

Most people will choose not to take the bet because of loss aversion. Loss aversion is the tendency for people to strongly prefer avoiding losses to acquiring gains. In this case, losing $100 is seen as more painful than gaining $100 is pleasurable, even though the probability of either outcome is equal.

A Gambler Offers Random Individuals a Chance to Make a Bet.A