Figure 14-4

question 339

Multiple Choice

Figure 14-4. The figure shows a utility function for Dexter.
-Refer to Figure 14-4. From the appearance of the utility function, we know that

• A)Dexter is risk averse.
• B)Dexter gains more satisfaction when his wealth increases by X dollars than he loses in satisfaction when his wealth decreases by X dollars.
• C)the property of decreasing marginal utility applies to Dexter.
• D)All of the above are correct.

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Definitions:

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

100% Reliable

An absolute level of dependability and consistency in performance or outcome that is often considered unachievable in practice.

Construct Validity

Construct validity is demonstrated when the measures of one concept or construct agree with the measures of other related concepts.

"Real-World" Outcomes

describe the actual results or impacts of interventions, policies, or research findings in natural, uncontrolled environments.