Friday Pop Quiz (Determining Your Risk-Tolerance Level Edition)


Former Reason editor Virginia Postrel has an interesting NY Times column up about different people's tolerance for risk. In explaining the latest research on the matter, she pops this quiz, which has been used to predict whether you're willing to take a gamble on a long-odds payout:

1) A bat and a ball cost $1.10 in total. The bat costs $1 more than the ball. How much does the ball cost?

2) If it takes five machines five minutes to make five widgets, how long would it take 100 machines to make 100 widgets?

3) In a lake, there is a patch of lily pads. Every day, the patch doubles in size. If it takes 48 days for the patch to cover the entire lake, how long would it take for the patch to cover half the lake?

Answers and a whole lot more–a journey into the hidden recesses of your mind in fact–here.