Find the utility as well as the ratio of utility.
1. If the payoff from result A is twice the payoff from result B, formerly the ratio of these utilities will be
1) .2 to 1.
2) Less than 2 to 1.
3) More than 2 to 1.
4) Unknown without further information.
2. A decision maker has chosen four as the probability for which he cannot choose between a certain loss of 10,000 and the lottery p(-25000) + (1-p)(5000). If the utility of -25,000 is 0 and of 5000 is 1 then the utility of -10,000 is
1) .5
2) .6
3) .4
4) 4