A decision maker who is considered to be a risk taker is faced with this set of probabilities and payoffs
For the lottery p(80)+ (1 - p)(-50),this decision maker has assessed the following indifference probabilities
Payoff Probability
50 .60
20 .35
10 .25
5 .22
0 .20
-10 .18
-25 .10
Rank the decision alternatives on the basis of expected value and on the basis of expected utility.

Question

A decision maker who is considered to be a risk taker is faced with this set of probabilities and payoffs
  For the lottery p(80)+ (1 - p)(-50),this decision maker has assessed the following indifference probabilities
Payoff Probability
50 .60
20 .35
10 .25
5 .22
0 .20
-10 .18
-25 .10
Rank the decision alternatives on the basis of expected value and on the basis of expected utility.

Quizplus · Accepted Answer

The Answer of A decision maker who is considered to be a risk taker is faced with this set of probabilities and payoffs
  For the lottery p(80)+ (1 - p)(-50),this decision maker has assessed the following indifference probabilities
Payoff Probability
50 .60
20 .35
10 .25
5 .22
0 .20
-10 .18
-25 .10
Rank the decision alternatives on the basis of expected value and on the basis of expected utility.

A Decision Maker Who Is Considered to Be a Risk