Reference no: EM131820430

The paper "The Psychology of Security" (Communications of the ACM [2008]: 36-41) states that people are more likely to gamble for a loss than to accept a guaranteed loss. For example, the authors indicate that when presented with a scenario that allows people to choose between a guaranteed gain of $5 and a gain of $10 if the flip of a coin results in a head, more people will choose the guaranteed gain. However, when presented with a scenario that involves choosing between a guaranteed loss of $5 and a loss of $10 if the flip of a coin results in a head, more people will choose the gambling option. Describe how you would design an experiment that would allow you to test this theory.