Consider the two assessments in difference shown in Figures 23.1 and 23.2 that we repeat for convenience. For a decision maker with a linear risk-tolerance w-curve, we have Calculate the exact and...

Consider the two assessments in difference shown in Figures 23.1 and 23.2 that we repeat for convenience.

For a decision maker with a linear risk-tolerance w-curve, we have

Calculate the exact and approximate values of p and rj when

I. a = 100; h = 200

II. a = 100; b = 500

III. a=100; b = 150