Evaluate the decision of a risk-averse individual when offered a gamble with equal chances of gaining or losing \$1,000.

• A. They are likely to take the gamble for the potential gain.
• B. They are likely to avoid the gamble due to the potential loss outweighing the gain.
• C. They will always choose the option with the highest potential gain.
• D. They will choose based on the expected utility.

Answer: (B)