Interview a businessperson who makes decisions, some of which are likely to involve some degree of risk. Assess their utility curve for money similar to the one that was constructed in the Measuring Risk (page three) lecture from earlier this week. Values on the horizontal axis range from $0 to $25,000. If you are unable to find a volunteer, assess your own desirability curve for money. Now, show what the curve would look like if the decision maker was risk averse, risk seeking, or risk neutral. You will find examples of the curves on pages five and six of the Measuring Risk Aversion lecture
Businessperson who makes decisions
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