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Unit(s): Unit 6, Unit 7 Keyword(s): Loss Aversion, Gambler's Fallacy, Hot Hand Given the effects discussed in the class, which is the most rational reason
Unit(s): Unit 6, Unit 7 Keyword(s): Loss Aversion, Gambler's Fallacy, Hot Hand Given the effects discussed in the class, which is the most rational reason that some people gamble with casinos? Choose one 1 point They don't realize that the odds are set such that the casinos win. The sensory overload from the lights and sounds of the casino make people choose inefficiently. People believe that they are "due" a win. Some people are not loss averse over small amounts of money, and so they are willing to take risks with negative expected values in the hope of large payoffs
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