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Prospect Y = ($20, 0.5 ; $40, 0.5) Justin values Prospect Y at $25 (so, for Justin, CE(Y) = $25) Prospect Z = ($15, 0.5
Prospect Y = ($20, 0.5 ; $40, 0.5)
Justin values Prospect Y at $25 (so, for Justin, CE(Y) = $25)
Prospect Z = ($15, 0.5 ; $45, 0.5)
Which of the following statements is true?
Group of answer choices
A.) For Justin, EV(Y) > EV(Z)
B.) For Justin, CE(Z) < $25
C.) For Justin, U(EV(Y)) > U(EV(Z))
D.) The information provided by this problem is not sufficient to determine whether Justin is Risk Averse or RIsk Loving.
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