>> Business Economics
Tim is offered two gambles. With gamble A, he either gains $2 or loses $1 with a 50 percent probability. With gamble B, he either gains $3 or loses $2 with a 50 percent probability. Tim prefers gamble B to gamble A. What can we conclude?
Tim is risk loving.
Tim is risk neutral.
Tim is risk averse.
Insufficient information to determine