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John, Alex, and Sam have assessed utilities for the following decision problem (payoff in dollars State of Nature Decision Alternative $2 53 di 20
John, Alex, and Sam have assessed utilities for the following decision problem (payoff in dollars State of Nature Decision Alternative $2 53 di 20 50 20 d2 80 100 100 The indifference probabilities are as follows Indifference Probability Payoff John Alex Sam 100 100 1.00 1.00 80 0.95 0,70 0.90 50 0.90 0.60 0.75 20 0.70 0.45 0.60 -20 0.50 0.25 0.40 -100 0.00 0.00 0.00 Calculate the risk premium for the risk taker (among the three) relative to the payoff of 80.
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