Question: 1. Explain why proportional scores represent a risk attitude that is risk-neutral.
2. An MBA student evaluating weather outcomes for an upcoming party has concluded that a sunny day would be twice as good as a cloudy day, and a cloudy day would be three times as good as a rainy day. Use these assessments to calculate utilities that range from 0 to 1 for sunny, rainy, and cloudy days
3. Throughout the chapter we have assessed individual utility functions that range from 0 to 1. What is the advantage of doing this?