Tournament systems reward people according to their performance relative to other contestants. One advantage is that variables beyond the control of the contestants affect them all without favoring any one of them. One disadvantage is called ability risk. This refers to contestant-specific variables, such as skill or knowledge that could give a particular contestant a much greater, or smaller, chance ofwinning.

1. Which scenario demonstrates the reduction of abilityrisk?

a. Vivian decides to increase the quality of the underwater-woven baskets she sells so that her sales representatives can have something else to throw in as part of their salespitch.

b. Jared, the host of a weight-loss competition, decides to up the prize money from $50,000 to $100,000 for the person who loses the mostweight.

c. James and David decide to play a game of basketball. The first person to reach 30 points wins. David does not really play sports much, so James gets a 25 point handicap and must score 55 points towin.

d. Teresa has the interns she hired for the summer compete against current junior-level employees for the one senior-level analystposition.

2. Which is most likely to be true about a tournament?

a. Tournament outcomes are based almost entirely on luck.

b. Tournaments cause environmental risks to increase.

c. Tournaments discourage competition.

d. Tournaments discourage cooperation between players.