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Problem 4 (5 points) For this problem, consider the following lottery. 89 entries will win SO, 10 entries will with $100 and 1 entry w
Problem 4 (5 points) For this problem, consider the following lottery. 89 entries will win SO, 10 entries will with $100 and 1 entry w win $10,000. A BFind the expected value of the lottery. Eduards really wants a ticket but all tickets are gone. So, Eduards offers the following four people $125 for a ticket. Determine if the following people (given their utility functions) will accept the offer. Note: Remember that E (U) = PAU(A) + PAU(B) + pcU(C). B D. Alan. U(1) = VI C W Bhupal U(1) = 12 D Chen. U(1) = 21 E Doreen, U(1) = In(f + 1)
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