1. Three decision makers have assess utilities for the decision whose payoff table appears below:

   	State of Nature
   Decision	s1	s2	s3
   d1	500	100	-400
   d2	200	150	100
   d3	-100	200	300
   Probability	.2	.6	.2

   	Indifference Probability for Person
   Payoff	A	B	C
   300	.95	.68	.45
   200	.94	.64	.32
   150	.91	.62	.28
   100	.89	.60	.22
   -100	.75	.45	.10

   Which of the following graphs best depicts the utility function for each decision maker A, B and C.

   1.

   2.

   3.

   4.

1 points

QUESTION 6

1. Characterize each decision maker's attitude toward risk by filling in the space witheither avoider, neutral or taker. Decision Maker A =(avoider, neutral or taker) Decision Maker B =(avoider, neutral or taker) Decision Maker C =(avoider, neutral or taker)

1 points

QUESTION 7

1. Which of the following statements is a correct result of utility analysis for this problem?

   A will choose d₂; B will choose d₂; C will choose d₂

   A will choose d₃; B will choose d₂; C will choose d₁

   A will choose d₂; B will choose d₃; C will choose d₁

   A will choose d₂; B will choose d₂; C will choose d₁

1 points

QUESTION 8

1. The expected utility of the decision for decision maker Ais:

   6.20

   7.34

   9.04

   9.12

1 points

QUESTION 9

1. The expected utility of the decision for decision makerBis:

   3.32

   5.60

   6.10

   6.20

1 points

QUESTION 10

1. The expected utility of the decision for decision makerCis:

   3.02

   3.32

   4.25

   4.86

1 points

QUESTION 11

1. What is the expected value of the lottery for payoff 150 for decision-maker A?