Derive your own utility function for profit for the range of profits shown in the following table:

a. Find the probability p that would make you indifferent between (1) accepting a risky project with probability p of making $4,000 and probability 1 - p of making a profit of $1,000 or (2) making a profit of $2,000 with certainty. Write this probability in the correct blank in the table.b. Repeat part a for $3,000 and $3,200.c. Compute the marginal utility of profit.d. Does your utility index indicate that you have a risk-averse, risk-neutral, or risk loving attitude toward risk? Explain.

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Profit Utility Marginal utility of profit outcome index $1,000 0.0 2,000 3,000 3,200 4,000 1.0