Author Question: Exponential utility functions indicate that the decision maker is a. risk monitor. b. risk averse. ... (Read 246 times)

karateprodigy · **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.

heinisk01 · **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.