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Suppose you are indifferent between (1) getting 30 for sure, and (2) 50% chance $36 and 50% chance 26. If your utility has the form
Suppose you are indifferent between (1) getting 30 for sure, and (2) 50% chance $36 and 50% chance 26. If your utility has the form U(x)=x^(1-)/(1-y), what is the parameter y? 0.67 A. B 1.15 C.2.5 D.3.61 Which is INCORRECT regarding utility functions? A. Utility function measures the happiness from consumptions B. Assume U(x)=-e^(-x) and x>0. Therefore U(x)
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