A Decision Maker Whose Utility Function Graphs as a Straight

question 26

Multiple Choice

A decision maker whose utility function graphs as a straight line is

• A)conservative.
• B)risk neutral.
• C)a risk taker.
• D)a risk avoider.

---

Definitions:

Peripheral Process

A type of information processing that occurs without deliberate, conscious thought, often based on superficial cues rather than content analysis.

Central Process

The fundamental mechanisms or operations that underlie a complex system or phenomenon.

Heuristics

Simplified decision-making strategies or mental shortcuts that people use to make judgments and solve problems quickly and efficiently.

Emotional Appeal

A persuasive technique that seeks to elicit an emotional response from the audience to win support for a particular stance or action.