Question 4. (25 points)
Jamal has n utility function U=W*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) ﹩ 4 million for sure, or (B) q gamble that pays ﹩ 1 million with probability
0.6 and $ 9 million with probability 0.4.
【題組】(d﹚ Should Jamal pick A or B2 Why?