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2. Suppose that Sarah is an Expected Utility Decision maker and her utility over outcomes/ wealth = (measured in million f) is given by u(=)

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2. Suppose that Sarah is an Expected Utility Decision maker and her utility over outcomes/ wealth = (measured in million f) is given by u(=) = 100 . Sarah is a house-owner which is worth w and knows that with probability 1/2 her house is damaged reducing the value to m, such . that 0 s than she already does while Tom still pays t (all other conditions being equal)? Explain

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