A decision maker has the following utility function $$\begin{array} { r c }
\text { Payoff } & \text { Indifference Probability } \
\hline 200 & 1.00 \
150 & .95 \
50 & .75 \
0 & .60 \
- 50 & 0
\end{array}$$ What is the risk premium for the payoff of 50?

Question

A decision maker has the following utility function $$\begin{array} { r c } 
\text { Payoff } & \text { Indifference Probability } \
\hline 200 & 1.00 \
150 & .95 \
50 & .75 \
0 & .60 \
- 50 & 0
\end{array}$$ What is the risk premium for the payoff of 50?

Quizplus · Accepted Answer

The Answer of A decision maker has the following utility function $$\begin{array} { r c } 
\text { Payoff } & \text { Indifference Probability } \
\hline 200 & 1.00 \
150 & .95 \
50 & .75 \
0 & .60 \
- 50 & 0
\end{array}$$ What is the risk premium for the payoff of 50?

A Decision Maker Has the Following Utility Function What Is the Risk Premium for the Payoff of 50