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. Hannah faces a random income of $1,600 with probability 3/. and $2,500 otherwise. She has (expected) utility function given by: u(m) =/; where m
\\. Hannah faces a random income of $1,600 with probability 3/. and $2,500 otherwise. She has (expected) utility function given by: u(m) =\\/; where m is the actual income that is realized. Calculate the certainty equivalent of Hannah's random income. 0 $1,825 0 $1,806 0 $19 0 $42.5 Q . Hannah faces a random income of $1,600 with probability % and $2,500 otherwise. She has (expected) utility function given by: u(m)=\\/E where m is the actual income that is realized. Calculate Hannah's risk premium. 0 $19 Q $1,825 0 $1600 0 $625
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