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Part 3 (0.9 point) 0 See Hint If Denise decides not to bet, then in event lshe will have 3% and in event25he will have

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Part 3 (0.9 point) 0 See Hint If Denise decides not to bet, then in event lshe will have 3% and in event25he will have $ .Therefore, her expected utility from not betting is . [Round your answer to two decimal places.) Part 4 (0.3 point) 0 See Hint Should Denise take the bet? If 01 Question (2 points) a See page 226 Denise is an expected utility maximizer. Her preferences among contingent commodity bundles are represented by the expected utility function 1:.[61 , (:2 , 11'], 1n) = 11'] J2? + 2 \"32. Denise's friend, Aaron. has offered to bet her $4,000 on the outcome of the ip of a fair coin [a coin equally likely to come up heads or tails]. If the coin comes up heads, Denise must payAaron $4,000. but if the coin comes up tails, then Aaron must pay Denise $4.000. If she doesn't take the bet, Denise will have $10,000 for sure. Let event 1 be "coin comes up heads" and event 2 be "coin comes up tails." 15t attempt Part 1 (0.6 point) 0 See Hint If Denise accepts the bet, then in event 1 she will have a total of 5 and in event 2 she will have a total of 5 Part 2 (0.3 point) 0 See Hint Because the probability of each event (the coin coming up heads or tails) is 0.5, Denise's expected utility for the gamble is . (Round your answer to two decimal places.)

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