3 Assess your own utility function in 3 different ways a Use the certainty equivalent...

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3 Assess your own utility function in 3 different ways a Use the certainty equivalent approach to assess your utility function for wealth over a range of 100 to 20 000 U 100 U 20 000 U 1000 U 2500 U 5000 U 9000 U 15000 b Use the probability equivalent approach to assess your utility function for wealth over a range of 100 to 20 000 U 1500 U 5500 U 9000 U 14500 c Plot the assessments from part a and b on the same graph and compare them Why do you think they differ Can you identify any biases in your assessment process

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3 Assess your own utility function in 3 different ways a Use the certainty equivalent approach to assess your utility function for wealth over a range of 100 to 20 000 U 100 U 20 000 U 1000 U 2500 U 5000 U 9000 U 15000 b Use the probability equivalent approach to assess your utility function for wealth over a range of 100 to 20 000 U 1500 U 5500 U 9000 U 14500 c Plot the assessments from part a and b on the same graph and compare them Why do you think they differ Can you identify any biases in your assessment process