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Part B: Utility and Decision Making Question 2 (20 marks) Sarah is considering playing a game in which a ball is placed under one of
Part B: Utility and Decision Making Question 2 (20 marks) Sarah is considering playing a game in which a ball is placed under one of three cups and you win a prize of 20 if you select the cup with the ball under it. Playing the game costs 12. i. What is the total expected utility of Sarah's decision to play the game? (8 marks) ii. If Sarah values the excitement of playing the game as having a utility of 7. What is the total expected utility of Sarah's decision to play the game? (8 marks) iii. Should Sarah play the game? (4 marks)
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