Question: Suppose that we offer a choice between a coin-toss game with an expected value of $50, and a certain amount of $40. For each of

  1. Suppose that we offer a choice between a coin-toss game with an expected value of $50, and a certain amount of $40. For each of the following, answer "choose the certain amount," "choose the lottery," or "not enough information."
    1. Which would a risk-averse person take?
    2. Which would a risk-neutral person take?
    3. Which would a risk-loving person take?

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