Asked by megha ramani on Jul 25, 2024
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The framing bias makes specific predictions about how people will behave when faced with a sure course of action versus a gamble.Which of the following best describes the effects of the framing bias?
A) People are risk-averse (i.e.,preferring a sure thing) for both gains and losses.
B) People are risk-seeking (i.e.,preferring a gamble) when choosing among gains and losses.
C) People tend to be risk-averse when choosing among gains,but risk-seeking when choosing among losses.
D) People tend to be risk-seeking when choosing among gains,but risk-averse when choosing among losses.
Framing Bias
A cognitive bias where people react differently to a particular choice depending on how it is presented, such as a loss or gain.
Risk-Averse
A tendency to avoid taking risks, preferring safer or more predictable outcomes over uncertainty.
Risk-Seeking
characterizes the tendency of an individual or entity to take decisions that have a significant level of uncertainty or potential for negative outcomes in the hope of achieving higher gains.
- Recognize various biases such as the framing bias, and how they affect decision-making processes.
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Learning Objectives
- Recognize various biases such as the framing bias, and how they affect decision-making processes.
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