Erma is given $5,000 and offered a choice between receiving an extra $2,500 with certainty or flipping a coin and getting $5,000 if heads or $0 if tails. Which option does she prefer?

a)She is indifferent between the two options.

b)She would choose $2,500 because the certain $2,500 is more valuable than the uncertain $5,000.

c)She would choose uncertain $5,000.

d) Depends on her attitude towards risk.