Tim is offered two gambles. With gamble a, he either gains $2 or loses $1 with a 50% probability. With gamble B, he either gain $3 or loses $2 with a…

Tim is offered two gambles. With gamble a, he either gains $2 or loses $1 with a 50% probability. With gamble B, he either gain $3 or loses $2 with a 50% probability. time prefers gamble B to gamble A. Wht can we conclude? a) Tim is risk averse b) Tim is risk neutral c) tim is risk loving d) tim suffers from gambling addiction e) Tim is irrational

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