Author Question: Exponential utility has an adjustable parameter called risk tolerance. The risk tolerance parameter ... (Read 260 times)

laurencescou · **on:** Jun 24, 2018

Exponential utility has an adjustable parameter called risk tolerance. The risk tolerance parameter measures:
a. how much money the decision maker has to spend
b. the decision maker's attitude toward risk
c. how much risk there is in a given decision
d. the probability of an unfavorable outcome
e. none of these choices

Question 2

In a multiple regression analysis involving 4 explanatory variables and 40 data points, the degrees of freedom associated with the sum of squared errors, SSE, is 35.
a. True
b. False
Indicate whether the statement is true or false