Decision Analysis
Interview a businessperson who makes decisions, some of which are likely to involve some degree of risk. Assess their utility curve for money similar to the one that was constructed in the Measuring Risk (page three) lecture from earlier this week. Values on the horizontal axis range from $0 to $25,000. If you are unable to find a volunteer, assess your own desirability curve for money. Now, show what the curve would look like if the decision maker were risk averse, risk seeking, or risk neutral.
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Used a valid methodology to arrive at the answer.
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Ensured the mathematical correctness of computations.
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