Please payoff table Suppose that you have the following payoff table:State of NatureDecision 51S2di250100d2100-50150Suppose that p-0.75 would make you indifferent between a guaranteed payoff of 150 and the lottery.Find your risk premium for the payoff of 150.The answer has no decimals.

A sample of 1000 customers of similar size and activity have been observed. On average 15 have…

Answered: Suppose that you have the following…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Suppose that you have the following payoff table: Decision $1 d₁ d₂ 250 100 State of Nature $2 53 100 0 -50 150 Suppose that p-0.75 would make you indifferent between a guaranteed payoff of 150 and the lottery. Find your risk premium for the payoff of 150. The answer has no decimals.