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There is a competition with entrance fee $5. The prize is $25 and the probability of winning is 0.3. Currently you have $12. Suppose
There is a competition with entrance fee $5. The prize is $25 and the probability of winning is 0.3. Currently you have $12. Suppose that your utility function for money you have is given by u(x) = log(x). Find the following values: EU of competition is 2.72 CE of competition is 17.78 RP of competition is 1.04 Your risk attitude is Risk-averse 1.27 10.96 18.62 1.17 3.54 14.79 1.71 Risk-seeking 1.25 3.08 Risk-neutral
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