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Which of the Following Utility Functions Represents Prospect Theory?
A) ug(x)+ul(c)=x.5+ln(c)u_{g}(x)+u_{l}(c)=x^{.5}+\ln (c)

Question 7

Multiple Choice

Which of the following utility functions represents prospect theory?


A) ug(x) +ul(c) =x.5+ln(c) u_{g}(x) +u_{l}(c) =x^{.5}+\ln (c)
B) ug(x) +ul(c) =x.5+1cu_{g}(x) +u_{l}(c) =x^{.5}+\frac{1}{c}
C) ug(x) +ul(c) =x+2cu_{g}(x) +u_{l}(c) =x+2 c
D) ug(x) +ul(c) =x2+c2u_{g}(x) +u_{l}(c) =x^{2}+c^{2}

Correct Answer:

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