On this homework problem and its corresponding solution that I uploaded in the p
ID: 1198403 • Letter: O
Question
On this homework problem and its corresponding solution that I uploaded in the pictures below, I am basically having trouble understanding how he determines the risk preference based on a gobble of gibberish. I know how to decide if something is risk-averse, risk-neutral, or risk prone based on graphs and word problems. But this...this concept of finding it is completley outlandish to me. Especially with how he came to the conclusion that the DM is risk prone based on absolutley no data whatsoever. It just baffles me, so I'm hoping that someone here could help me find whatever clue to this mystery that's eluding me so.
Explanation / Answer
The question is wrong and it cannot be answered.
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