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Renee Plans a Night Out at the Casino $100\$ 100 Speeding Ticket

Question 19

Multiple Choice

Renee plans a night out at the casino. On the way to the casino, she is pulled over for speeding and gets a $100\$ 100 speeding ticket. She incorporates this into her nightly expenses. Thus, when Renee arrives at the casino, which gamble does prospect theory suggest she'll prefer.


A) Renee will be indifferent between all gambles.
B) $50\$ 50 for sure.
C) $100\$ 100 with probability .5.
D) $200\$ 200 with probability.25.

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