#1 - New technologies that promise to extend life and

[maximbasu]

Hi,
I chose B while the correct answer was A.
Why is B wrong? Doesn't it give a motivating factor for people investing into new technologies?

Thanks,
MB

[Clay Cooper]

Hi Maximbasu,

Thanks for your question.

Answer choice B is incorrect because because it does not, in fact, provide a reason to invest in new technologies that promise to extend life and decrease pain in the face of a probable total loss of one's investment. All that B tells us is that many such technologies have recently been developed; that does nothing to eliminate the problem of an investor's losing his or her money, which we are told in the stimulus usually happens.

If answer choice A were true, however, it would explain why people are willing to invest money in the pursuit of such technologies, even when most such investments typically result in losses: the potential reward is so great that the expected return on investment is still positive, despite the fact that most investments are losses. It's (kind of) like the lottery - no one denies that most tickets lose, but if the potential - and unlikely - reward is big enough, some people will play anyway.

Does that make sense?