Question 3 A decision maker has a utility function U = VĪ. This decision maker is: O risk-loving. O risk-gaining. O risk-neutral. O risk-averse, Question 4 Given the possible outcomes to a lottery being only the values 2, 6 with equal probabilities, calculate the expected value, variance and standard deviation? O EV = 4, variance = 4, standard deviation = 2 O EV = 3.5, variance = 4, standard deviation = 2 O EV = 4, variance = 16, standard deviation = 4 O EV = 4, variance = 4, standard deviation = 4
Question 3 A decision maker has a utility function U = VĪ. This decision maker is: O risk-loving. O risk-gaining. O risk-neutral. O risk-averse, Question 4 Given the possible outcomes to a lottery being only the values 2, 6 with equal probabilities, calculate the expected value, variance and standard deviation? O EV = 4, variance = 4, standard deviation = 2 O EV = 3.5, variance = 4, standard deviation = 2 O EV = 4, variance = 16, standard deviation = 4 O EV = 4, variance = 4, standard deviation = 4
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.7P
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7
![Question 3
A decision maker has a utility function U = VI. This decision maker is:
O risk-loving.
O risk-gaining.
O risk-neutral.
O risk-averse.
Question 4
Given the possible outcomes to a lottery being only the values 2, 6 with equal probabilities, calculate the expected value, variance and standard deviation?
O EV = 4, variance = 4, standard deviation = 2
O EV = 3.5, variance = 4, standard deviation = 2
O EV = 4, variance = 16, standard deviation = 4
O EV = 4, variance = 4, standard deviation = 4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4a290b0-e55d-4878-8c49-4536c7e5d3eb%2F163db79a-6ec2-4463-b2e4-5cc030383b64%2Ft5687y_processed.png&w=3840&q=75)
Transcribed Image Text:Question 3
A decision maker has a utility function U = VI. This decision maker is:
O risk-loving.
O risk-gaining.
O risk-neutral.
O risk-averse.
Question 4
Given the possible outcomes to a lottery being only the values 2, 6 with equal probabilities, calculate the expected value, variance and standard deviation?
O EV = 4, variance = 4, standard deviation = 2
O EV = 3.5, variance = 4, standard deviation = 2
O EV = 4, variance = 16, standard deviation = 4
O EV = 4, variance = 4, standard deviation = 4
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