Suppose that a decision maker's risk attitude toward monetary gains or losses x given by the utility function U(x) = 
Show that this decision maker is indifferent between gaining nothing and entering a risky situation with a gain of $80,000 (probability 1/3) and a loss of $10,000 (probability 2/3).
What will be an ideal response?
The tree above shows the utility values using this utility function. Since the expected utilities for the two alternatives are equal, the decision maker is indifferent between them (PrecisionTree defaults to the upper branch in such situations)
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Indicate whether the statement is true or false
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Answer the following statement true (T) or false (F)
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