Exam question, needs to be completed by 11:45

DescriptionConsider the following five rows of choices between lottery A and lottery B. Basedon these, discuss what would be the choices of risk-averse, risk-neutral, or riskseeking individuals over the five rows.Row Lottery A Lottery B1 Win 110 or 0 with 50% probability Win 15 with 100% probability2 Win 110 or 0 with 50% probability Win 35 with 100% probability3 Win 110 or 0 with 50% probability Win 55 with 100% probability4 Win 110 or 0 with 50% probability Win 75 with 100% probability5 Win 110 or 0 with 50% probability Win 95 with 100% probabilityDescribe the methodology employed by Dohmen et al. (2011) to measure individualrisk preferences and outline the main findings of the study.

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