The Following Questions Use the Information Below

question 53

Multiple Choice

The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45.

-Refer to Exhibit 14.7. What is the decision maker's certainty equivalent for this problem?

• A)-$15,000
• B)$82,000
• C)$56,100
• D)$82,000.

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