Author Question: A _____ is a decision maker who would choose a guaranteed payoff over a lottery with a better ... (Read 115 times)

lidoalex

  • Hero Member
  • *****
  • Posts: 538
A _____ is a decision maker who would choose a guaranteed payoff over a lottery with a better expected payoff.
 a. risk taker b. risk-neutral
  c. risk avoider d. risk-creator

Question 2

__________ is a measure of the total worth of a consequence reflecting a decision maker's attitude toward considerations such as profit, loss, and risk.
 a. Cost-to-company
  b. Utility
  c. Decision value
  d. Regret



briseldagonzales

  • Sr. Member
  • ****
  • Posts: 303
Answer to Question 1

c
RATIONALE: A risk avoider is a decision maker who would choose a guaranteed payoff over a lottery with a better expected payoff.

Answer to Question 2

b
RATIONALE: Utility is a measure of the total worth of a consequence reflecting a decision maker's attitude toward considerations such as profit, loss, and risk.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

For a complete list of videos, visit our video library