Compute the utility for the pay off and give a summary.
Chez Paul is contemplating either opening another restaurant or expanding its existing location. The payoff table for these two decisions is:

s1

s2

s3

New Restaurant

$80K

$20K

$160K

Expand

$40K

$20K

$100K

Paul has find outd the indifference likelihood for the lottery having a payoff of $160K with probability p and $80K with possibility (1p) as follows:
Amount

Indifference Probability(p)

$40K

.4

$20K

.7

$100K

.9

Is Paul a risk avoider, a risk taker, or risk neutral? Give explanation.