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Exhibit 14.7 The Following Questions Use the Information Below

question 83

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Exhibit 14.7
The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45. Exhibit 14.7 The following questions use the information below. A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45.   -What is the formula for the exponential utility function U(x) ? A)  −e−<sup>x/R</sup> B)  1 + e−<sup>x/R</sup> C)  1 − e<sup>x/R</sup> D)  1 − e−<sup>x/R</sup>
-What is the formula for the exponential utility function U(x) ?


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