True false if kathy ultimately desires to return to a more...

True / False: If Kathy ultimately desires to return to a more active lifestyle playing with her grand kids, but demonstrates some apprehension associated with falling with balance training - this is an example of approach-avoidance ambivalence a Subjective b Objective c Analysis d Plan

(a) If offered a choice, which option would you prefer. Give your reasons. Option A: 100% chance of gaining $250 Option B: A 25% chance of gaining $1000; 75% chance of gaining nothing (b) If offered another choice, which option would you prefer. Give your reasons. Option C: 100% chance of losing $750 Option D: 75% chance of losing $1000; 25% chance of losing nothing (c) Tversky and Kahneman found that a majority of people chose Option A in the first choice and Option D in the second suggesting that people are risk-averse when it comes to gains but risk-oriented when it comes to loss. Economic theory long maintained that people and institutions will always use logic (math) or at least good intuition when making economic decisions. Find the expected value of each option and decide if this experiment supports this prevailing assumption.

Sheryl E.