If X Is a Monetary Value (A Payoff If Positive,a

question 75

Multiple Choice

If x is a monetary value (a payoff if positive,a cost if negative) ,U(x) the utility of this value,and R > 0 is the risk tolerance,then the function U(x) = 1 - is called a(n) _____ utility.

• A)Poisson
• B)exponential
• C)binomial
• D)normal

---

Definitions:

Two-factor Theory

A concept in psychology that proposes emotions are based on a combination of physical arousal and a cognitive label.

Schachter-Singer Theory

A theory of emotion that states emotions are derived from physiological arousal and the labeling of that arousal based on cognitive processing of the environment.

Two-factor Theory

A concept in psychology that suggests job satisfaction and dissatisfaction are influenced by separate and distinct factors, with hygiene factors affecting dissatisfaction and motivators affecting satisfaction.

Cognitive Label

The process of identifying and defining one's emotional state based on cognitive assessment of the situation.