Three Decision Makers Have Assessed Utilities for the Problem Whose

Essay

Three decision makers have assessed utilities for the problem whose payoff table appears below. $$\begin{array} { c | c c c } & &{ \text { State of Nature } } \\\text { Decision } & s _ { 1 } & s _ { 2 } & s _ { 3 } \\\hline d _ { 1 } & 500 & 100 & - 400 \\d _ { 2 } & 200 & 150 & 100 \\d _ { 3 } & - 100 & 200 & 300 \\\hline \text { Probability } & .2 & .6 & .2\end{array}$$ $$\begin{array}{l}\begin{array} { r c c c } &&&&\underline{\text { Indifference Probability for Person }}\\\text { Payoff } &&& \text { A } & \text { B } & \text { C } \\\hline 300 &&& .95 & .68 & .45 \\200 &&& .94 & .64 & .32 \\150 &&& .91 & .62 & .28 \\100 &&& .89 & .60 & .22 \\- 100 &&& .75 & .45 & .10\end{array}\end{array}$$
a.Plot the utility function for each decision maker.
b.Characterize each decision maker's attitude toward risk.
c.Which decision will each person prefer?