Da 2 Flashcards
1
Q
When calculating EU using the x(squared) way, what must you first do?
A
Square the values used in the calculation
2
Q
When calculating EU using the square root of x, what must we first do?
A
Square root the values in the EU formula
3
Q
Using the square root of x is a risk… method
A
Risk adverse
4
Q
Using the x2 method is risk…
A
A risk taker
5
Q
X2 and square root of X are only useful if the values aren’t…
A
Negative
