You are on the game show Deal or No Deal! and have made it almost until the end. You are left with four suitcases. One of them holds $1,000,000, one of them holds $50,000, one of them holds $10,000, and the other holds $1. Assume your payoff is one of these four amounts in equal probability. What is the expected payoff? The banker is offering you a fixed sum in exchange for the four suitcases. If your utility of the random prize W is equal to U(W)=W^(2/3) what is the minimum amount you would accept from the banker? Why is this less than the expected payoff?