1. The following describes a decision-makers utility function: Answer the following questions:

$$	Utile
-3000	-3000
-1000	-1000
-600	-500
-500	-350
0	0
100	100
500	150
1000	200
2000	350
4000	500
10000	11000

(a) What is the utility of a gamble in which the decision-maker would win $10,000 or lose $3,000 with probabilities of 0.5?

(b) What amount would the decision-maker accept for certain, for indifference between the two choices? (You can use interpolation to estimate)

(c) What is the gambles expected monetary value?

(d) What risk premium is being paid?