Applies the Constant Absolute Risk Aversion (CARA) utility function after
affine-scaling outcomes from [val_min, val_max] to [1e-6, 1].
Usage
cara_utility(v, alpha, val_min, val_max)
Arguments
- v
Numeric vector of outcome values.
- alpha
Risk aversion parameter (> 0 risk-averse, < 0 risk-seeking).
- val_min
Minimum plausible outcome.
- val_max
Maximum plausible outcome.
Value
Numeric vector of utility values.