Suppose that you are the only income earner in the family, and that you have to choose between two new jobs. The first job would guarantee your current total family income for life. The second job is possibly better paying, but the income is also less certain. There is a 50-50 chance the second job would increase your total lifetime income by 20 percent and a 50-50 change that is would cut it by 10 percent.

Which job would you take: the first job or the second job?

Suppose the chances were 50-50 that the second job would increase your total lifetime income by 20 percent, and 50-50 that it would cut it by 15 percent.

Would you take the first job or the second job?

Suppose the chances were 50-50 that the second job would increase your total lifetime income by 20 percent, and 50-50 that it would cut it by five percent.

Would you take the first job or the second job?

Are you generally a person who is fully prepared to take risks or do you try to avoid taking risks? Rate yourself from 0 to 10, where 0 means “unwilling to take any risks” and 10 means “fully prepared to take risks.”

People can behave differently in different situations. How would you rate your willingness to take risks in the following areas? For each situation, rate your willingness from 0 to 10, where 0 means “unwilling to take any risks” and 10 means “fully prepared to take risks.”

In placing “fair” bets where, for example, you have a 50-50 chance of winning $20 and a 50-50 chance of losing $10?