Okay, Questions:
1) Tell us the risk level of the following bet:
A person says they will pay you $10.00 if you can correctly multiply 2 X 4. (The person wants nothing from you if you lose.)
High risk | |
Some risk | |
No risk |
2) Check the reason that bet has no risk:
You can afford to lose $10 bucks! That's nothing to you! | |
Even if you lose, you don't have to pay anything. Plus, you know the answer. |
3) Why is the bet below "high risk?"
A person says they will pay you $1000 if you can guess the high temperature tomorrow at noon. You have to pay them $100 if you guess wrong.
You can't afford to lose $100 bucks! | |
There's no way you can know for sure what the temperature will be. |