Answer the following questions in 1 paragraph or more.

1. Our responses are different when we perceive decisions in terms of losses rather than gains, we seek risk when facing guaranteed losses but avoid risk under conditions of guaranteed gain. But what is risk? What makes some decisions more risky than others?

2. All decision makers prefer positive outcomes to negative ones. Unfortunately, we are geared toward believing that desirable consequences are more likely to occur to us than negative events. How does this impact your decision making?

3. If you were offered a choice between a sure thing of $100 and the flip of a fair coin for the chance to win $200 (or to win nothing), which would you select? Explain your reasoning.

4. A staff meeting is called to discuss various risky projects that have high potential payoffs. After evaluating the alternatives, one option looks especially promising to you. Although the project appears to be risky, you believe the likely gains are worth the risk. Would your willingness to support the risky project be influenced by the amount of personal involvement you anticipated? Would you consider the situation differently if your boss asked you to accept personal responsibility for the risky assignment by becoming the project manager? What if you were just asked your opinion, and the actual project would be handled by someone else?

5. If we have clarified the likely outcomes and determined that our decision will (or will not) have an important impact on us personally, do we allow this expectation to influence our actions? What if the opposite were true and we were not (or were) likely to be held responsible for the consequences of our decisions? Would we behave differently? If so, do we understand why, and can we justify the reasoning behind our position?