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The remaining questions are based on this decision: Option A: $100 for sure Option B: $200 with 50% probability, $0 with 50% probability What is
The remaining questions are based on this decision: Option A: $100 for sure Option B: $200 with 50% probability, $0 with 50% probability What is the expected value of option A? (1 point) What is the expected value of option B? (1 points) Pick you "favorite" utility curve (i.e. concave or convex). Show graphically that this utility curve is either risk seeking or risk averse. (2 points)
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