Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Fred is willing to pay $1 for a lottery ticket that has an expected value of zero. This proves that Fred| ?

 a. is risk averse. 

 b. has a certainty-equivalent coefficient that is equal to one. 

 c. is risk neutral. 

 d. None of the above is correct.

user-image
Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/07/29
Elke Woofter
by Elke Woofter , Project Assistant , American Technical Associates

I am not a gambler, however I am willing to pay a $1 or $2 for the risk of loosing.

However if I loose our children have won ... the State Lotteries fund college funds which pays tuition and some of the books needed ... at least that way children with a3.0 average can attend school and get a better education... so I do chose option D)  and every one has there own perspective on this issue 

Khaled Anwar
by Khaled Anwar , Senior Sales Engineer , "Automotive company''

The answer is : Option ( D )

Ismael Hamad
by Ismael Hamad , Trainer , ANTONOIL DMCC , Lukoil project, WQ2

d. None of the above is correct>>>>>>>>

Yaqoub Alomar
by Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

Agree with the given answers

----------------------------------------

Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

(d) None of the options is the correct answer

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

None of the above is correct.....................

Ramesh Sehgal
by Ramesh Sehgal , Chief Financial Officer , How United Services WLL

I agree with D. He is not risk averse.He is not risk neutral and certainty coefficient is not equal to one. Hence none is correct.

Option (D) None of the above is correct

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: d. None of the above is correct.. None of the above is correct. 

More Questions Like This