B. Following table gives Payoffs for actions A1, A, and A; corresponding to states ofnature S, and S, whose chances are 0-6 and 0-4 respectively.States of NatureActionsA,A3S,162018S,191512Find decisions under:(i) Maximin criterion(ii) EMV criterion.

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Answered: 8. Following table gives Payoffs for…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

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Consider two individuals (1 and 2) and assume their preferences over gamblesover [0, infinity) can be represented respectively by U1 (p) = Sigma p (ai) multiply by squareroot of (ai) and U2 (p) = Sigma p (ai) multiply by exponential of (ai), where p(ai) is the probability p assigns to (ai). Are the two individuals risk-averse, risk-loving or risk-neutral? Compute the Arrow-Pratt measure of absolute risk aversion for the twoindividuals? Compute the certainty equilvalent for the two agents for the gamble thatpays 0 with probability 1/2and 3 with probability 1/2What is the expected value of this lottery? What can you say about the comparison betweenthe expected value and the certainty equivalent (this quantity is calledrisk premium)?
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
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8. Following table gives Payoffs for actions A1, Az and A; corresponding to states of mature S, and S, whose chances are 0-6 and 0-4 respectively. States of Nature Actions A, A2 A3 S, 16 20 18 S, 19 15 12 Find decisions under: (i) Maximin criterion (ii) EMV criterion.