Look at the utility function graphed below and select the type of decision maker that corresponds to the graph.
A)Risk averter
B)Risk neutral
C)Risk taker
D)Risk player

Question

Look at the utility function graphed below and select the type of decision maker that corresponds to the graph. 
A)Risk averter 
B)Risk neutral 
C)Risk taker 
D)Risk player

Quizplus · Accepted Answer

The graph shows a linear utility function, which indicates that the decision maker is risk neutral. They have a constant marginal utility for each unit of gain or loss, meaning that they do not have a preference for either risks or sure things. They make decisions based solely on the expected outcomes and their associated probabilities.

Look at the Utility Function Graphed Below and Select the Type