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
Rank the decision alternatives on the basis of expected value and on the basis of expected utility.
$$\begin{array} { r c }
\text { Payoff } & \text { Probability } \
50 & .60 \
20 & .35 \
10 & .25 \
5 & .22 \
0 & .20 \
- 10 & .18 \
- 25 & .10
\end{array}$$

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
  Rank the decision alternatives on the basis of expected value and on the basis of expected utility.
 $$\begin{array} { r c } 
\text { Payoff } & \text { Probability } \
50 & .60 \
20 & .35 \
10 & .25 \
5 & .22 \
0 & .20 \
- 10 & .18 \
- 25 & .10
\end{array}$$

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
  Rank the decision alternatives on the basis of expected value and on the basis of expected utility.
 $$\begin{array} { r c } 
\text { Payoff } & \text { Probability } \
50 & .60 \
20 & .35 \
10 & .25 \
5 & .22 \
0 & .20 \
- 10 & .18 \
- 25 & .10
\end{array}$$

A Decision Maker Who Is Considered to Be a Risk