Is their some questions in Ifoa or IAI past years to show how a utility function can be constructed when there is a discrete set of outcomes and axioms of expected utility applies? Any suggestions on it will be greatly appreciated
Hi Rajat, I'm not familiar with the IAI papers but I know that there are no past papers in CT7 and CT8 in the UK where the examiners wanted you to construct the utility function. The axioms have been asked before: CT7 April 2005 Q27 CT7 September 2008 Q38 CT8 Sep 2013 Question 1 - this question is the most important one here. This is the kind of thing that I suspect might come up in the exam, Good luck! John
