6. The following definition applies to both investing and gambling: putting money at risk in the hope of earning more money. In spite of this similarity, society has very different moral views of the two activities.

a. Develop an argument reconciling the differences and similarities between the two concepts. That is, why do people generally feel good about investing and bad about gambling? (Hint: Think of where the money goes and what part of of a person’s income is used.)

b. Discuss the difference between investing and gambling by referring to the probability distributions shown on page 392. Identify the representations of a total loss, a big win, and likely outcomes.