There are two routes, 1 and 2.
It is known that route 1 takes 60 minutes and route 2 takes 41 minutes.
If there is problems in the traffic:
Route 1 will increase to 70 minutes;
Route 2 will increase for 90 minutes.
The probability of traffic problems for:
Route 1 is 0.2;
Route 2 is 0.92.
How can I know which route is better for a risk neutral person?
Calculations:
Route 1:
$0.2*(70)+0.8*(60)=62$
Route 2:
$0.92*(90)+0.08*(41)=86.08$
How can I obtain the required information ( which route is a better route for a neutral risk person) without having the utility function?
Can anyone give me an hint?
Thanks
Based on what's being described here, you have already solved the problem.
https://en.wikipedia.org/wiki/Risk_neutral
Risk-neutral people don't worry about the uncertainty involved, they just maximize expected utility. Based on your route calculations, route 1 is generally faster.