Examlex
A high value for this correlation indicates a function that does not discriminate well between participants.
Utility Function
A mathematical representation of how a consumer ranks different bundles of goods according to their level of satisfaction or utility.
Risk Averse
A description of an investor or decision-maker who prefers to avoid risk, choosing options with potentially lower returns but lesser risks.
Fire Insurance
A type of property insurance that covers damage and losses caused by fire, protecting homeowners and businesses.
Utility Function
A mathematical representation that ranks alternatives according to their utility to an individual, reflecting their preferences or satisfaction from consuming goods or services.