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 straight line, indicating that the decision maker is risk neutral, meaning they assign equal utility to all possible outcomes regardless of their probabilities. Therefore, the best choice would be the option with the highest expected value.

Look at the Utility Function Graphed Below and Select the Type