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Please don't use excel, and show the whole process. Suppose a consumer has log-utility over wealth, defined by u(W) = In(W). Suppose this consumer has
Please don't use excel, and show the whole process.
Suppose a consumer has log-utility over wealth, defined by u(W) = In(W). Suppose this consumer has $100, and is considering tak- ing a gamble in which the consumer flips a coin, and gets $20 she flips heads and $0 if she flips tails. What is the most amount of money the consumer would be willing to pay to play take this gamble? What if the consumer has $1,000 dollars of wealth? Suppose a consumer has log-utility over wealth, defined by u(W) = In(W). Suppose this consumer has $100, and is considering tak- ing a gamble in which the consumer flips a coin, and gets $20 she flips heads and $0 if she flips tails. What is the most amount of money the consumer would be willing to pay to play take this gamble? What if the consumer has $1,000 dollars of wealthStep by Step Solution
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