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.

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Definitions:

Poison

A substance that is capable of causing illness or death to organisms, typically by chemical reaction or other activity on the molecular scale, when an adequate quantity is absorbed.

Anecdotes

Short, often amusing or interesting stories about a real incident or person, typically used to illustrate or support a point.

ESP

Extrasensory perception, which is the claimed ability to gain information through the mind without the use of the traditional five senses.

Falsifiable

A criterion for a theory or hypothesis, stating that it must be possible to refute it through observation or experiment.