Tim Is Offered Two Gambles

Multiple Choice

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?

A) Tim is risk loving.
B) Tim is risk neutral.
C) Tim is risk averse.
D) Insufficient information to determine.