A Decision Maker Who Is Considered to Be a Risk

question 19

Essay

A decision maker who is considered to be a risk taker is faced with this set of probabilities and payoffs
For the lottery p(80)+ (1 - p)(-50),this decision maker has assessed the following indifference probabilities
Payoff Probability
50 .60
20 .35
10 .25
5 .22
0 .20
-10 .18
-25 .10
Rank the decision alternatives on the basis of expected value and on the basis of expected utility.

Comprehend the basics of simple linear regression and the interpretation of regression statistics.

Recognize the implications of Durbin-Watson statistic values and autocorrelation in data.

Understand the concept and significance of variability in observed versus predicted values.

Analyze the effects of adding variables to a multiple regression model on R Square.