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PROBLEM 3. For your graduation present from college, your parents are offering you your choice of two alternatives. The first alternative is to give you
PROBLEM 3. For your graduation present from college, your parents are offering you your choice of two alternatives. The first alternative is to give you a monetary gift of $20,000. The second alternative is to make an investment in your name. This investment will quickly have the following two possible outcomes: m Probability Receives $10,000 Receives $35,000 \" Your Utility for receiving Xthousand dollars is given by the Utility Function: UCX) = vZX 8 Which choice should you make to maximize Expected Utility (show your work}
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