-Assume the Information in the Table Regarding the Probability and

question 18

Multiple Choice

$\begin{array}{|l|l|l|l|l|}\hline \text { Investment } & \text { A } && \text { B } \\\hline \text { State description } & \text { Bad state } & \text { Good state } & \text { Bad state } & \text { Good state } \\\hline \text { Probability } & 0.25 & 0.75 & 0.25 & 0.75 \\\hline \text { Payoff } & 200 & 220 & 400 & 435 \\\hline\end{array}$
-Assume the information in the table regarding the probability and payoffs of assets A and B relates to an investor who has a log utility function.By how much will the utility of asset B exceed that of asset A for this investor?

• A) \( -0.712 \)
• B) \( -0.687 \)
• C) \( 0.684 \)
• D) \( 0.712 \)

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Definitions:

Flexible Battery Approach

A method in psychological assessment that allows for selection of tests tailored to the individual's needs rather than a fixed set of tests.

Neuropsychological Assessment

A testing method used to evaluate a person's cognitive, behavioral, and motor performances as a way to understand brain function.

Fixed Battery Approach

A method in psychological assessment where a standard set of tests is given to all examinees regardless of their specific issues or conditions to ensure consistency in the data collected.

Cut-Off Scores

Predetermined scores on assessments or tests that determine a threshold for acceptable performance or criteria for selection.