refers to how people make decisions in a lottery or with uncertainty. People do not generally make expected value decisions. They tend to overweight unlikely outcomes and underweight more likely events. a. Heuristicsb. Rational decision makingc. Prospect theory

prospect theory

Explanation: Prospect theory an be defined as a behavioral model that shows how people decide between alternatives that involve risk and uncertainty and it also demonstrates that people think in terms of expected utility relative to a reference point (e.g. current wealth) rather than absolute outcomes.

answer; ///blank(1); rate-buster; blank(2) systematic soldiering;

credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.