Expected utility, again Suppose that you are facing three gambles. A gives you a 1/3 probability of winning $9. B gives you a 1/4 probability of winning $16. C gives you a 1/5 probability of winning $25.

(a) What is the expected utility of each of these gambles if your utility function is u (x) = √x, and which one should you choose?

(b) What is the expected utility of each of these gambles if your utility function is u(x) = x 2 , and which one should you choose?