Your Utility Function Is Given by U = M^1/2

question 33

Multiple Choice

Your utility function is given by U = M^1/2.You have a choice: take $100 in cash or flip a coin.If you flip a coin, the outcomes are as follows: heads, you win $225; tails, you win $49.You will

• A)Take the $100 in cash
• B)Take the gamble
• C)Be indifferent between the cash and the gamble
• D)It is impossible to say with the information given

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Definitions:

Thematic Apperception Test

A projective psychological test that asks respondents to tell stories about ambiguous pictures, aimed at uncovering their underlying thoughts, feelings, and attitudes.

Rorschach Test

A psychological test in which subjects' perceptions of inkblots are recorded and analyzed to assess personality traits and emotions.

Minnesota Multiphasic Personality Inventory

is a psychological assessment tool consisting of multiple-choice questions, used to identify personality structures and psychopathology.

Congruence

The state of agreeing, being in harmony, or matching precisely.