*Please answer the following questions*
 

---

---

Consider the following situation. You have a 30% chance of winning £100, a 20% chance of winning £40, and a 50% chance of winning £0.

---

In life, we are often asked to make predictions about (or we will often gamble on) our own ability to solve problems, complete tasks or win games of skill. In such situations, there are often consequences (for example: financial, emotional or reputational) if we achieve a level which is different from our initial prediction. When setting a prediction two considerations which may affect your choice are: A) “I am worried that I might set my predictions or aspirations too high, end up not meeting them, and regret setting an unattainable goal” B) “I am worried that I might set my predictions or aspirations too low, end up exceeding them, and regret not having more belief in my own ability" For you personally, place a percentage on the relative effect that considerations of A or B might have on your choice of prediction, if faced, in the future, with a task where you were asked to predict or gamble on your own ability. For example, if you think A and B would weigh equally on your mind, answer 50% for both, or if you would only ever consider one, place 100% on that and 0% on the other.

---

*Consider the following situation:* You are in an electronics shop, and have to make a decision between a cheap TV, made by a company you don't recognise, and a more expensive TV, which is made by LG. The 2 TVs appear to have the same characteristics (same size, picture resolution and a 12 month warranty), and produce a similar quality picture, but, fearing that the cheap TV might be unreliable, you decide to purchase the LG TV. As it happens, the LG TV breaks down shortly after the 12 month warranty expires, and you feel that you might as well have purchased the cheap TV instead, and saved yourself some money. Shortly thereafter, you need to replace your mobile phone, and have narrowed your choice down to a cheaper LG mobile phone, and a more expensive Apple iPhone. Again, both phones appear to have the same characteristics (same size, picture resolution and a 12 month warranty), and are similarly enjoyable to use and navigate. You know that the iPhone is the more reliable brand in mobile phones, and also know that the fact your LG TV broke down doesn't make it any more likely that your LG mobile phone will do so too, but are faced with a tough decision. Previously, you had purchased an LG product, and ended up wishing you had made a different decision. At the same time, however, you had purchased a more expensive, supposedly reliable product, and ended up wishing you had taken the cheaper option.