Problem 2 You have 20 utiles worth of chocolate. We offer to make a gamble with you: tossing some coin, if it comes up heads, weíll give you 130 more utiles worth of chocolate;

if it comes up tails, weíll take your 20 utiles worth of chocolate. Assuming that you maximize your expected utility and that you refuse this gamble, what can you infer about the probability you give to the coin landing heads?

Modeling