The humiliation show You are on a game show where people embarrass themselves in the hope of winning a new car. You are given the choice between pressing a blue button and pressing a red button.

(a) If you press the blue button, any one of two things can happen: with a probability of 2/3, you win a toy frog (utility –1), and with a probability of 1/3 you win a bicycle (utility 11). Compute the expected utility of pressing the blue button.

(b) If you press the red button, any one of three things can happen: with a probability of 1/9 you win the car (utility 283), with a probability of 3/9 you win a decorative painting of a ballerina crying in the sunset (utility 1), and with a probability of 5/9 you end up covered in green slime (utility – 50). Compute the expected utility of pressing the red button.

(c) What should you do?