A risk-avoider decision maker will bail out of risky scenario only if the compensation to bail out is more than the expected monetary payoff from the risky scenario.

Question

Quizplus · Accepted Answer

A risk-avoider decision maker prefers certainty and will likely bail out of a risky scenario even if the compensation is less than the expected monetary payoff, as they prioritize avoiding risk over potential gains.

A Risk-Avoider Decision Maker Will Bail Out of Risky Scenario