I ask you to invest $$100$ in my company. I give you one of the following $3$ justifications to invest.

$$ There is an $80$ percent chance you will earn nothing.

$$ There is a $20$ percent chance you will earn $$400,$ over and above your initial investment.

$$ You will earn $$80$ over and above your initial investment.

$($A$)$ Given these $3$ explanations, which represents the scenario that moves you the most to make the

investment? Why?

$($B$)$ Is there any functional difference between these $3$ scenarios? Why or why not?

$($C$)$ What concept address this choice set? Define it$.$