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When Deciding Between Playing a Lottery with an 80% Chance

Question 4

Multiple Choice

When deciding between playing a lottery with an 80% chance of winning $4,000 or receiving $3,000 outright,most people choose the _____ because of the _____.


A) lottery;preference for variable rewards
B) lottery;rational choice theory
C) $3,000;sunk-cost fallacy
D) $3,000;certainty effect

Correct Answer:

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