This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Exponential utility functions indicate that the decision maker is a. risk monitor. b. risk averse. ... (Read 110 times)

karateprodigy

  • Hero Member
  • *****
  • Posts: 550
on: Jun 24, 2018
Exponential utility functions indicate that the decision maker is
 a. risk monitor.
  b. risk averse.
  c. risk neutral.
  d. risk taker.

Question 2

The utility function for money is a curve that depicts the relationship between
 a. decision alternative and utility. b. branch probabilities and utility.
  c. regret and utility. d. monetary value and utility.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

heinisk01

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jun 24, 2018
Answer to Question 1

b
RATIONALE: All exponential utility functions indicate that the decision maker is risk averse.

Answer to Question 2

d
RATIONALE: A curve that depicts the relationship between monetary value and utility is known as the utility function for money.


karateprodigy

  • Member
  • Posts: 550
Reply 2 on: Jun 24, 2018
Great answer, keep it coming :)

atrochim

  • Member
  • Posts: 331
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Regions of the Human Visual Cortex and Their Functions Regions of the Human Visual Cortex and Their Functions
Risk Factor Categories for Atherosclerotic Cardiovascular Disease Risk Factor Categories for Atherosclerotic Cardiovascular Disease
Endocrine Gland Hormones and Their Functions Endocrine Gland Hormones and Their Functions
How to find derivatives of trigonometric functions How to find derivatives of trigonometric functions
How to find the derivatives of exponential functions How to find the derivatives of exponential functions
Finding derivatives of Exponential functions - pt 3 Finding derivatives of Exponential functions - pt 3
Video: Passive Smoke Exposure

For a complete list of videos, visit our video library