Survey Results:

The psychologists Amos Tversky and Daniel Kahneman studied the psychology of risk by posing survey questions related to expected value. Consider the following questions.

Which option would you rather take, A or B? A: 100% chance of gaining $240 B: 25% chance of gaining $1000; 75% chance of gaining nothing

Which option would you rather take, C or D? C: 100% chance of losing $750 D: 75% chance of losing $1000; 25% chance of losing nothing

A majority of people chose option A, while for Question 2, a majority of people chose option D.

Are the responses given in the surveys consistent with the expected values?

Explain with complete sentences comparing the expected values with the results of the survey.