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Suppose you are gambling, and currently are at a loss of $100. Your utility is U(x)=e^(x/100) when suffering from a loss. Suppose you are offered
Suppose you are gambling, and currently are at a loss of $100. Your utility is U(x)=e^(x/100) when suffering from a loss. Suppose you are offered a gamble: (1) get $10 with 50% chance, (2) lose L with 50% chance. What is the maximal value of L that you are still willing to accept this gamble?
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