Question

Certainty effect examples

Answer 1

[AI-generated answer — Bot GPT 3.5]

1. A person preferring a guaranteed $50 over a 50% chance of winning $100.

2. An individual choosing a stable job with a lower salary over a risky job with potential for higher pay.

3. Someone opting for a fixed-rate mortgage over an adjustable-rate mortgage to avoid uncertainty in monthly payments.

4. A business investing in low-risk government bonds instead of higher-risk stocks to ensure a consistent return on investment.

5. A person choosing to purchase travel insurance to protect against unforeseen events, even if the likelihood of something happening is low.