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For each of the following utility functions over wealth w, compute the following: i) the expected utility and the certainty equivalent of the lottery: 10%
For each of the following utility functions over wealth w, compute the following: i) the expected utility and the certainty equivalent of the lottery: 10% chance of ending up with $100 and 90% chance of ending up with $10,000; ii) x, where if you start with $10,000, you would be indifferent between gaining $x for sure and a free lottery ticket giving you a 1-in-1,000,000 chance of gaining $990,000 (and otherwise gaining nothing, thus staying at $10,000)
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