If X Is a Monetary Value (A Payoff If Positive,a $e ^ { x d R }$

question 24

Multiple Choice

If x is a monetary value (a payoff if positive,a cost if negative) ,U(x) the utility of this value,and R > 0 is an adjustable parameter called the risk tolerance,then the function U(x) = 1 - $e ^ { x d R }$
Is called

• A) Poisson utility
• B) exponential utility
• C) binomial utility
• D) normal utility

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