Quote Originally Posted by marriedputter View Post
This reminds me of prospect theory:

Option A: You have an 80% chance of winning $4,000, but a 20% chance you win nothing.


Option B: You have a 100% chance of winning $3,000.


Which would you choose and why?


Option A: You have an 80% chance of losing $4,000, but a 20% chance that you lose nothing.


Option B: You lose $3,000 for sure.

The answer is "A" in the first set and "B" in the second set. Most people reverse them though, especially choosing "A" in the second set.
With multiple kicks at the cat, and with more and more kicks at the cat, your correct answers are proper. However, with only 1 kick at the cat, what would the risk averse person do?