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  • June 25, 2021

|Flag question There are 3 possible outcomes in a decision problem. The payoff is either a gain of 2561$, a gain of 320$ or a loss of 239$. To the decision maker, the utility of the gain of 2561$ is 592. The utility of the loss of 239$ is 73. The decision maker is indifferent between- Taking lottery that yields gain of2561$ with a probability of 0.88 and a loss of 239$ in the rest of the cases. Getting a fixed amount of 320$. How much is the utility of 320 for the decision maker? Answer:

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