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Request you not to write your queries/answers/opinions in question window. It prevents ppl from analysing the question. The whole purpose of GMAT Club forum goes wasted by doing so.
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Pre phrasing the question makes it much easier to answer.

S says that the nation is becoming much more risk averse while T says that risk taking is very broad and depends on the context. This is exactly what B is saying. In this question it helps to think of an answer before getting to the choices.
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Hi everyone,

Pre-thinking

It seems that we have one person who is convinced that people are too risk averse and another person who does not agree.
Person#1 claims that in general people are too risk averse given how they behave when it comes to food.
The first impression is that this claim is a generalization.
As a matter of fact person#2 points out that the reasoning of Person#1 is too generalized since people can be both risk averse and reckless in different situations.

POE:

(A) a distinction should be made between avoidable and unavoidable risks
Irrelevant

(B) aversion to risk cannot be reliably assessed without reference to context
Context is the key point used by [b]person#2 to find the flaw in the reasoning of Person#1[/b]

(C) there is confusion about risk in the minds of many members of the public
Irrelevant

(D) mathematical odds concerning risk give an unwarranted impression of precision
Irrelevant

(E) risk cannot be defined in relation to perceived probable benefit
Irrelevant
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S: Our nation is becoming too averse to risk. We boycott any food reported to contain a toxic chemical, even though the risk, as a mathematical ratio, might be minimal. With this mentality, Columbus would never have sailed west.

T: A risk-taker in one context can be risk-averse in another: the same person can drive recklessly, but refuse to eat food not grown organically.

T responds to S by showing that:

(A) a distinction should be made between avoidable and unavoidable risks - WRONG. No comparison as such is suggested.
(B) aversion to risk cannot be reliably assessed without reference to context - CORRECT. If context is there then risk aversion is subjective.
(C) there is confusion about risk in the minds of many members of the public - WRONG. Irrelevant.
(D) mathematical odds concerning risk give an unwarranted impression of precision - WRONG. It's not about the precision of the risk but why S said so can be analogised in similar ways in different scenarios.
(E) risk cannot be defined in relation to perceived probable benefit - WRONG. 'Benefit' is a diversion from the scope of the passage.

Answer B.
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