
You participate in two lotteries. The first gives you a 5% chance of winning $250, while the second gives you a 30% chance of winning the same amount. Which of the following options seems like a more significant change in the odds? A) Increase your chance of winning the first lottery from 5% to 10% B) Increase your chance of winning the second lottery from 30% to 35% Of 56 undergraduates presented with these choices, three quarters chose option A. However, when given the choice between increasing the probability of winning from 65% to 70% or 90% to 95%, the... Read more →