Imagine you face the following choices and has to make
decisions:
Decision 1.
Choose between:
A. a sure gain of $240
B. a 25% chance of winning $1000 and 75% chance of winning
nothing
Decision 2.
Choose between:
C. a sure loss of $750
D. a 75% chance of losing $1000 and 25% chance of losing
nothing
Decision 3.
Choose between:
E. a sure loss of $3000
F. a 80% chance of losing $4000 and 20% chance of losing
nothing
What would your answers be?