Question 9 1 pts Penelope's decisions are governed by the utility function U(X) = 1-e-2/a where represents a potential payoff. She is invited to appear on a game show. If she decides to participate in the game show, she will have a 40% chance of winning an amount xi or a 60% chance of losing X2 . If however, she decides not to participate in the game show, she will be given an amount of cash to compensate her for her time. Using the Principle of Expected Utility, determine the minimum amount of cash C she would have to be offered to dissuade her from participating in the game show. C = 0.4x1 0.622 a C = -al-(6.22/a) + (421/a) - 1] a C = 6a(1 e*2/4) + 16 (1 2*21/a) a C=-a In (6287/a + po 2-21/) C = a ln(2 - gets/a fpe-31/4) Question 9 1 pts Penelope's decisions are governed by the utility function U(X) = 1-e-2/a where represents a potential payoff. She is invited to appear on a game show. If she decides to participate in the game show, she will have a 40% chance of winning an amount xi or a 60% chance of losing X2 . If however, she decides not to participate in the game show, she will be given an amount of cash to compensate her for her time. Using the Principle of Expected Utility, determine the minimum amount of cash C she would have to be offered to dissuade her from participating in the game show. C = 0.4x1 0.622 a C = -al-(6.22/a) + (421/a) - 1] a C = 6a(1 e*2/4) + 16 (1 2*21/a) a C=-a In (6287/a + po 2-21/) C = a ln(2 - gets/a fpe-31/4)