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Quiz 3 . 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
Quiz 3 . 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
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