Exhibit 14.8 The Following Questions Use the Information Below

question 91

Multiple Choice

Exhibit 14.8
The following questions use the information below.
A company needs to buy a new insurance policy. They have three policies to choose from, A, B and C. The policies differ with respect to price, coverage and ease of billing. The company has developed the following AHP tables for price and summary. The other tables are not shown due to space limitations.
-A "risk averse" decision maker assigns the ____ relative utility to any payoff but has a(n) ____ marginal utility for increased payoffs.

• A) largest; increasing
• B) largest; diminishing
• C) smallest; diminishing
• D) smallest; increasing

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Definitions:

Cashier Checks

A check issued by a bank, drawn on its own funds rather than that of a personal account. It is typically considered a secure form of payment.

Businesses Community

A group of companies and organizations operating within the same industry or geographic area, often sharing resources, information, and economic interests.

Cash

Money in the form of coins or banknotes, especially that used to pay for goods or services.

Special Kind

A unique or particular type or category that stands out from others.