Question: When creating the graph, the Sure Equivalence approach will be used. Here, it will be assumed that the highest gain is 1000 TL and the
When creating the graph, the "Sure Equivalence" approach will be used. Here, it will be assumed that the highest gain is 1000 TL and the lowest gain is 0 TL. After the risk profile graph is created, 0.35 probability of winning 850 TL, 0.20 probability of winning 500 TL, 0.15 probability of winning 350 TL, 0.30 probability of winning 100 TL Each individual will find their own Sure Equivalence Figure, Expected Utility Value, and Risk Premium Value for the game.
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