Let > 0. A decision maker has a utility function for money of the form U (x) = x if x > 0, x if x 0.

Stats 260, 11/15 Class Announcements ● Next homework is out! Due 11/29 (only five questions) ● Blackboard test grade is the correct one, not testing services ● Scatter plots are in chapter two of book if you need to review Notes ● Correlation Coefficient: Statistical measure of how strong a relationship between two variables is. ○ Will run between 1 and 1. If it is negative, you have a negative linear slope. ○ Perfect linear correlation would mean all of your data would line up perfectly on a straight line. THe data is exactly linear. ○ Perfect positive linear relationship = 1 ○ Perfect negative linear relationship = 1 ○ You can tell by looking at the scatter plot if a relationshi