I don't make sense the 4,5,6 questions. I hope you can help and I know that is a lot of work.

1. Consider each of the following choices between a sure thing and a gamble. In the first situation, for example, imagine a choice between getting $0 for sure and a gamble in which you could win $20 or lose $12 (I've written the amount as $12 in the table). In the situations below, you can't actually make a choice, because I have not specified the probabilities of winning and losing in the gambles. That's your job. For each of the situations, decide what the probability of winning P(Win) would have to be for you to be completely indifferent (or completely torn) between the sure thing and the gamble. There are only two possibilities in each gamble, so P(Lose) = 1 - P(Win). Fill in the table with your values of P(Win). Probability of Winning (Indifference) P(Win) Calculated Utility U(S) Option A "Sure Thing" $0 $16 Value that Needs a Utility $ -S12 $16 -S8 versus versus $0 versus $8 versus $8 S20 versus $0 versus versus $20 $36 $0 versus Option B (Gamble) Sto Win Sto Lose $20 -S12 $20 SO $20 -$8 $20 SO $28 $0 $20 $32 SO $20 -S24 $60 SO $24 SO $20 -S40 $40 SO $20 -$4 $32 SO $20 -$20 $44 SO $20 -$16 $20 SO S20 versus versus versus versus $28 -S32 $36 -S24 $60 $24 --$40 $40 -S4 $32 -$20 S44 -S16 S12 $52 $20 $0 $20 SO $20 SO $20 SO S12 versus versus versus versus versus versus S20 versus S52 SO $4 versus $20 SO S4 4. Make a scatter plot of your utilities as a function of the dollar values. In other words, put the actual dollar values on the horizontal axis and the calculated utilities on the vertical axis. Based on the above calculation, for example, I'd plot the point x =-$12, y = -150. There should be 22 points in your plot: one for each of the situations in the table, plus the two points that were assumed at the beginning: (x = $0, y = 0) and (x = $20, y = 100). Your initial plot is likely to be very noisy. That often happens with data from an individual person, unless he or she adjusts the values for P(Win) to be more consistent (which is definitely okay, as consistency is a good thing). Although a hand-drawn plot is fine, it will be easier to create and tweak your plot if you use the posted spreadsheet. You'll just input your P(Win) values into the green area of the spreadsheet and then run a macro to calculate the utilities and make the plot. The macro invokes Excel's goal seek routine, which means that you don't have to do the algebra yourself. But definitely try the algebra on a few different cases to make sure you know how to do it There are a few more comments on the spreadsheet on the next page. If the spreadsheet is too much of a hassle, then don't bother, just do the calculations and create the plot by hand. 5. Regardless of whether you create your scatter plot by hand or by using the spreadsheet, draw your utility function through the points as well as you can. Your utility function is the best fitting line or curve through your scatter plot. It should probably go through the point (x = $0, y=0). There are a few ways to do this. If you plotted the data by hand, just draw the utility function by hand. If you plotted the data in Excel (which I recommend), do not get Excel to fit a straight line to the data unless your plot really is straight over the full range of the data. You can probably use a drawing tool in Excel to draw the utility function right on top of the graph. You can then take * 2 a screenshot of the relevant part of the spreadsheet and paste it into Word. Word and PowerPoint have similar drawing tools. There are surely other methods as well. If it is too much of a hassle to get your curve drawn onto the plot, don't worry about it. Just skip this step. If you skip it, be especially clear in Part 6 when you describe what your utility function would have looked like if you had drawn it. 6. Comment on the shape of your utility function by answering the following three questions: (A) Is your utility function any steeper for losses than for gains? (B) Is the function linear or is it curved? (C) Is the curvature for losses different from the curvature for gains? If so, how? 1. Consider each of the following choices between a sure thing and a gamble. In the first situation, for example, imagine a choice between getting $0 for sure and a gamble in which you could win $20 or lose $12 (I've written the amount as $12 in the table). In the situations below, you can't actually make a choice, because I have not specified the probabilities of winning and losing in the gambles. That's your job. For each of the situations, decide what the probability of winning P(Win) would have to be for you to be completely indifferent (or completely torn) between the sure thing and the gamble. There are only two possibilities in each gamble, so P(Lose) = 1 - P(Win). Fill in the table with your values of P(Win). Probability of Winning (Indifference) P(Win) Calculated Utility U(S) Option A "Sure Thing" $0 $16 Value that Needs a Utility $ -S12 $16 -S8 versus versus $0 versus $8 versus $8 S20 versus $0 versus versus $20 $36 $0 versus Option B (Gamble) Sto Win Sto Lose $20 -S12 $20 SO $20 -$8 $20 SO $28 $0 $20 $32 SO $20 -S24 $60 SO $24 SO $20 -S40 $40 SO $20 -$4 $32 SO $20 -$20 $44 SO $20 -$16 $20 SO S20 versus versus versus versus $28 -S32 $36 -S24 $60 $24 --$40 $40 -S4 $32 -$20 S44 -S16 S12 $52 $20 $0 $20 SO $20 SO $20 SO S12 versus versus versus versus versus versus S20 versus S52 SO $4 versus $20 SO S4 4. Make a scatter plot of your utilities as a function of the dollar values. In other words, put the actual dollar values on the horizontal axis and the calculated utilities on the vertical axis. Based on the above calculation, for example, I'd plot the point x =-$12, y = -150. There should be 22 points in your plot: one for each of the situations in the table, plus the two points that were assumed at the beginning: (x = $0, y = 0) and (x = $20, y = 100). Your initial plot is likely to be very noisy. That often happens with data from an individual person, unless he or she adjusts the values for P(Win) to be more consistent (which is definitely okay, as consistency is a good thing). Although a hand-drawn plot is fine, it will be easier to create and tweak your plot if you use the posted spreadsheet. You'll just input your P(Win) values into the green area of the spreadsheet and then run a macro to calculate the utilities and make the plot. The macro invokes Excel's goal seek routine, which means that you don't have to do the algebra yourself. But definitely try the algebra on a few different cases to make sure you know how to do it There are a few more comments on the spreadsheet on the next page. If the spreadsheet is too much of a hassle, then don't bother, just do the calculations and create the plot by hand. 5. Regardless of whether you create your scatter plot by hand or by using the spreadsheet, draw your utility function through the points as well as you can. Your utility function is the best fitting line or curve through your scatter plot. It should probably go through the point (x = $0, y=0). There are a few ways to do this. If you plotted the data by hand, just draw the utility function by hand. If you plotted the data in Excel (which I recommend), do not get Excel to fit a straight line to the data unless your plot really is straight over the full range of the data. You can probably use a drawing tool in Excel to draw the utility function right on top of the graph. You can then take * 2 a screenshot of the relevant part of the spreadsheet and paste it into Word. Word and PowerPoint have similar drawing tools. There are surely other methods as well. If it is too much of a hassle to get your curve drawn onto the plot, don't worry about it. Just skip this step. If you skip it, be especially clear in Part 6 when you describe what your utility function would have looked like if you had drawn it. 6. Comment on the shape of your utility function by answering the following three questions: (A) Is your utility function any steeper for losses than for gains? (B) Is the function linear or is it curved? (C) Is the curvature for losses different from the curvature for gains? If so, how