Statistics- Three decision makers have assess utilities for the decision

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

   	State of Nature
   Decision	s 1	s 2	s 3
   d 1	500	100	-400
   d 2	200	150	100
   d 3	-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 with either 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 A is:
   

   6.20

   7.34

   9.04

   9.12

1 points

QUESTION 9

1. The expected utility of the decision for decision maker B is:
   

   3.32

   5.60

   6.10

   6.20

1 points

QUESTION 10

1. The expected utility of the decision for decision maker C is:
   

   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?