題組內容
Question 4. (25 points)
Jamal has n utility function U=W1/2, where W is his wealth in millions of dollars and U is the utility he obtains from that wealth. In the final stage of n game show, the host offers Jamal q choice between (A) S4 million for sure, or (B) q gamble that pays $ 1 million with probability 0.6 and $ 9 million with probability 0.4.
Jamal has n utility function U=W1/2, where W is his wealth in millions of dollars and U is the utility he obtains from that wealth. In the final stage of n game show, the host offers Jamal q choice between (A) S4 million for sure, or (B) q gamble that pays $ 1 million with probability 0.6 and $ 9 million with probability 0.4.
(c﹚ Does A or B offer Jamal n higher expected utility? As expected utility________ B's expected utility ________? Again, show your calculations.
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Andrew_0872
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