Sharon is given two options. option 1 allows her to take $5. option 2 allows her a 1/3 chance of winning $50, but she risks losing $10, 2/3 of the time. sharon chooses option 1. what best describes sharon?

An investment offers a total return of 18 percent over the coming year. janice yellen thinks the total real return on this investment will be only 14 percent. what does janice believe the inflation rate will be over the next year?

Simon, aged 10, is invited to a classmate's birthday party at an exclusive ski resort on march 15th. the day will include 4 hours of snowboarding, lunch and birthday cake. simon's mother checks a box on the invitation that says "yes, we will attend" and returns it to the classmate's address. unfortunately, they later don't attend the party when simon comes down with the flu. on march 17th, simon's mother receives an invoice in the mail from simon's classmate for $35 that says, "party no-show fee." can simon's classmate collect the fee?

What part of the rational model of decision-making does the former business executive “elliott” have a problem completing?