Question
You play a game where if the flip of a fair coin results in heads, you get $1,000; and nothing if it comes up tails.
You play a game where if the flip of a fair coin results in heads, you get $1,000; and nothing if it comes up tails. Answer each of the following questions:
If youre risk averse, what is the amount (specify amount using either <, >, =) you would need to be paid to walk away from the game
If youre risk seeking, what is the amount (specify $ amount using either <, >, =) you would need to be paid to walk away from the game?
If youre risk neutral, what is the amount (specify $ amount using either <, >, =) you would need to be paid to walk away from the game?
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