Three decision makers have assessed utilities for the problem whose payoff table appears below. s1 s2 s3 d1 500 100 -400 d2 200 150 100 d3 -100 200 300 probabil ity .2 .6 .2 Indifference Probability for Person Payoff A B C 300 .95 .68 .45 200 .94 .64 .32 150 .91 .62 .28 100 .89 .60 .22 -100 .75 .45 .10 a. Plot the utility function for each decision maker. b. Characterize each decision maker's attitude toward risk. c. Which decision will each person prefer
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8) Three decision makers have assessed utilities for the problem whose payoff table appears
below.
s1 s2 s3
d1 500 100 -400
d2 200 150 100
d3 -100 200 300
probabil
ity
.2 .6 .2
Indifference Probability for Person
Payoff A B C
300 .95 .68 .45
200 .94 .64 .32
150 .91 .62 .28
100 .89 .60 .22
-100 .75 .45 .10
a. Plot the utility function for each decision maker.
b. Characterize each decision maker's attitude toward risk.
c. Which decision will each person prefer?
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