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Hannah faces a random income of $1,600 with probability 3/4 and $2,500 otherwise. She has (expected) utility function given by: u(m) 2% where m is

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Hannah faces a random income of $1,600 with probability 3/4 and $2,500 otherwise. She has (expected) utility function given by: u(m) 2% where m is the actual income that is realized. Calculate the certainty equivalent of Hannah's random income. Q$19 Q $42.5 0 $1,825 0 $1,806

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