The combination of these two outcomes can be expressed as1. 0.968U(520,000?)

.7 Question 19 Tanya, with utility function U(x), is asked to choose from a pair of options within each of the folloWing two Opportunities: Opportunity A (choose one): 61% chance to win: $520,000 OR 63% chance to win $500,000. Opportunity B (choose one): 98% chance to win $520,000 OR 100% chance to win $500,000. Within Opportunity A suppose Tanya chose the rst option (61% chance to win $520,000). According to the expected utility hypothesis this implies O.61U(520,000) > O.63U(500,000). Within Opportunity B, suppose Tanya chose the second option (100% chance to win $500,000). According to the expected utility hypothesis this implies [students, please add the appropriate equation]