[In this question a) and b), there is no indifference curve to calculate.Simply draw/estimate].

a) I prefer $1,000 for certain over a gamble where I earn an expected value of $1,000.Draw this state of affairs.

b)Determine (estimate/guess) from the graph you draw the value I'd be indifferent betweentaking for certain compared to the $1,000 from the gamble.

[I'd preferto get that amount ofmoney for sure and avoid the gamble].Include this information into the graph from part a].

c)Am I risk averse, risk neutral or risk loving?Explain.

d)Armed with information from a) and b), determine my Certainty Equivalent Adjustment Factor.

e)How might this sort of information be useful to a company?Discuss using an appropriateexample.

f)Thinking more deeply, from the general concept of expected value and risk (), how closelyought you follow this, or any notion of risk analysis?Discuss carefully.