Answer to Question #30338 in Math for victor

Question

In this chapter a decision tree was developed for John Thompson. After completing the analysis, John was not completely sure that he is indifferent to risk. After going through a number of standard gambles, John was able to assess his utility for money. Here are some of the utility assessments: U( - $190,000) = 0, U( - $180,000) = 0.15,
U(- $30,000) = 0.10, U(-$20,000) = 0.15,
U (-$10,000) = 0.2, U($0) = 0.3,
($90,000) = 0.5, U($100,000)=0.6 U=($190,000)=.95
and U($200,000) = 1.0. If John maximizes his expected utility, does his decision change?