1. “Utility measures the riskiness of an expected dollar payment.” True or false, and why? 2. Refer to the information in Table 2-2. Suppose you had to pick only one of the four alternatives but were...

1. “Utility measures the riskiness of an expected dollar payment.” True or false, and why?

2. Refer to the information in Table 2-2. Suppose you had to pick only one of the four alternatives but were permitted to play the game ten times. Would the alternative you select be different than if you could play only once?

3. Refer to Table 2-2. Suppose you had to pay $50 to play this game and could play it only once. The $50 payment is also a sunk cost that you lose regardless of the outcome of the spin of the wheel. Which alternative would you select under these circumstances?