Browsing by Subject "expected utility theory"

Study research how finnish farmers react to risk. Outcome is that finnish farmers are in average risk averse, and they weight lower probabilities more than high. Questionnaire was sent to 5 000 farmers, which 820 farmers sent their answer. Questionnaire included questions related to principal component analysis to confirm reliability. After analysis there were to principal components, which were compared in regression analysis with risk parameters alfa (value function parameter) and gamma (weighting function) with farmer's background information. Two principal components were not significant when alfa or gamma was dependent variable. Production sector was significant variable when weighting function parameter gamma acted as dependent variable. Age, amount of field owned or farms location did not have any meaning in attitudes towards risk. Study research how finnish farmers react to risk. Outcome is that finnish farmers are in average risk averse, and they weight lower probabilities more than high. Questionnaire was sent to 5 000 farmers, which 820 farmers sent their answer. Questionnaire included questions related to principal component analysis to confirm reliability. After analysis there were to principal components, which were compared in regression analysis with risk parameters alfa (value function parameter) and gamma (weighting function) with farmer's background information. Two principal components were not significant when alfa or gamma was dependent variable. Production sector was significant variable when weighting function parameter gamma acted as dependent variable. Age, amount of field owned or farms location did not have any meaning in attitudes towards risk.