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The lottery is: win 100 with probability 1/2, and lose 50 with probability 1/2. The expected value of the lottery is 25, and the
The lottery is: win 100 with probability 1/2, and lose 50 with probability 1/2. The expected value of the lottery is 25, and the expected utility for this lottery over wealth for general u, w, m is 100 * (25-w)/(25 - w + 1).
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The expected utility is the expected value of the lottery multiplied by the utility function In this ...
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Statistics The Art And Science Of Learning From Data
Authors: Alan Agresti, Christine A. Franklin
3rd Edition
9780321849281, 321755944, 321849280, 978-0321755940
