Question
An individual has the following utility function u(w) = 0.5 w 1.5 + 100 using the expected utility, order the following prospects in terms of
An individual has the following utility function u(w) = 0.5 w1.5 + 100
using the expected utility, order the following prospects in terms of preference, from the most to the least preffered
P1 (0.8, 9500, 5000)
P2 (0,6 , 10500, 3000)
What is the certainty equivalent level for P2
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Public Finance
Authors: Charles Francis Bastable
1st Edition
1375520083, 978-1375520089
