In the deal below, assume p=0.5 and a decision maker with an exponential u-curve and a risk-aversion coefficient ? = 0.001. I.e. the equation for the u-curve is ( ) , 0. x u x a be b ?? = + ? Plot the certain equivalent of the deal vs. X for the range where X=$0 to X=$10,000 in increments of $500. Explain and interpret the results.

5) Large Monetary Prospects Using an Exponential U-Curve In the deal below, assume p=0.5 and a decision maker with an exponential u-curve and a risk-aversion coefcient y = 0.001. I.e. the equation for the n-curve is u(x) =a+be_'",b0. Plot the certain equivalent of the deal vs. X for the range where X=$0 to X=$10,000 in increments of $500. Explain and interpret the results