Decision Making

Try doing these 2 questions below!

Question 1
Assume yourself richer by $300 than you are today.
Which of the following options do you choose?
A: A sure gain of $100
B: 50% chance of gaining $200, 50% chance to gain $0

Question 2
Assume yourself richer by $500 than you are today.
Which of the following options do you choose?
A: A sure loss of $100
B: 50% chance of losing $0, 50% chance to lose $200

You might wonder where did I get these random questions. I study them! Got this from my text & lecture note.
Prospect theory: The amount of joy when you gain $100 is lesser than the amount of sadness when losing $100

In question 1 & 2,
if you choose Option A, it is a less risky decision. (Risk Aversion)
if you choose Option B, it is a more risky decision. (Risk Seeking)
Are you the Risk Aversion type or Risk Seeking type?

Most of the people will choose Option A (in Qn1) & Option B (in Qn 2).
The rational is this, "if I'm gonna lose anyway, why not gamble my loss? I might be that lucky lass to not lose anything!"

But if you realise also, for both questions, if you pick Option A, you'll surely get $400.

Actually life is like a gamble. Sometimes you'll have to 'bet' on something and make a decision weighing the pros and cons. But I know my life is in control because I have a higher Power taking care of me.

3 Cheers for God!

Stop cyber bullying!

One of my coursemates played this during tutorial.

And it just made me cry. Aww...

And I really admire the father for his graciousness. Beyond words.