Curious - question

[evitable]

I just did one of those 10-minute online psych surveys Stanford's business school sends out once in awhile ($5 Amazon gift certificate, yay!)

One of the questions was:
If you were to choose between these two gambles, which would you choose?
1. Receive $40
2. Have a 50% chance of winning $200 and 50% of winning $0

What would you do? I'm curious.

Comments

[taintedshadow]

I"m a nerd for expected outcome... you're guaranteed 40 dollars, or you can gamble for 200, where half the time you get it... so on average you receive 100 per pick, therefor it's better to take the risk!

[stephchanganie]

I feel like economically, you're supposed to go for the 40. I, on the other hand, can't resist three digit dollar amounts:)

[iplayclarinet]

I'd go with $40...not much of a risk taker/gambler :). We have a Roulette set at home (no money used...just colored chips from my great aunt), and I always struggled to 'gamble' as necessary for a win...call me safe!