We were asked to measure our utility function for a certain range of monetary values, using two different methods: The Certainty Equivalence Method and the Probability Equivalence Method. The graph above is my utility function using the Certainty Equivalence Method and below is my utility function using the Probability Equivalence Method.
Hello - there's something not quite right with the graphs. They should both have the same monetary values on the X-axis, but the top graph only has values from 0 to 100 rather than 0 to 1000. Other than that the curves look identical, which I would find very surprising. If I were you, I'd recheck what you've done!
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