Multiple Choice
A decision maker has chosen .4 as the probability for which he cannot choose between a certain loss of 10,000 and the lottery p(−25000) + (1 − p) (5000) .If the utility of −25,000 is 0 and of 5000 is 1,then the utility of −10,000 is
A) .5
B) .6
C) .4
D) 4
Correct Answer:
Verified
Correct Answer:
Verified
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