Exhibit 14.7 The Following Questions Use the Information Below

Multiple Choice

Exhibit 14.7
The following questions use the information below.
A decision maker is faced with two alternatives.The decision maker has determined that she is indifferent between the two alternatives when p = 0.45.
Alternative 1: Receive $82,000 with certainty
Alternative 2: Receive $143,000 with probability p and lose $15,000 with probability 1 − p) .
-Refer to Exhibit 14.7.What is the decision maker's certainty equivalent for this problem?

A) −$15,000
B) $82,000
C) $56,100
D) $82,000.