regulatoryBody NABARD Grade A Prelims Mock Test 2024 Management Concepts of Management Decision Making
In advanced decision theory, what does the "Ellsberg Paradox" demonstrate about human behavior?
1
People are irrationally averse to taking risks, regardless of potential rewards
2
Decision-makers tend to overestimate their control over random events
3
Individuals prefer a sure gain over a gamble with a higher expected value
4
People prefer known risks over unknown risks, even when the unknown risk might be more favorable
5
Decision-makers are biased towards information that confirms their pre-existing beliefs