There are two alternative plans to evacuate a village of 900 people in the path of a deadly hurricane. According to the experiment by Amos Tversky and Danial Kahenman, which program will the majority of participants choose?
If Program A is adopted, there is a 33 percent chance of evacuating all 900 people and a 66 percent possibility of evacuating no one on time.
If Program B is adopted, 300 people will be evacuated.
a. Program A, because it sounds like it has a greater chance of success.
b. Program B, because it sounds less risky.
c. Either program, because they have equal predicted outcomes
d. Neither program, because neither solves the problem
b. Program B, because it sounds less risky.
You might also like to view...
What relationship is shown by a supply curve?
What will be an ideal response?
If the yield curve slope is flat for short maturities and then slopes steeply upward for longer maturities, the liquidity premium theory (assuming a mild preference for shorter-term bonds) indicates that the market is predicting
A) a rise in short-term interest rates in the near future and a decline further out in the future. B) constant short-term interest rates in the near future and further out in the future. C) a decline in short-term interest rates in the near future and a rise further out in the future. D) constant short-term interest rates in the near future and a decline further out in the future.