Let Us Assume That You Are Faced with Two Prospects

Multiple Choice

Let us assume that you are faced with two prospects of losing money: A and B. Prospect A is a 90% chance of losing $500. Prospect B is a 45% chance of losing $1000.
Prospect theory and the results of research cited in the textbook shows that individuals are more likely to choose which prospect?

A) Prospect A
B) Prospect B
C) both prospects equally