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Zhixiao's utility can be represented as u(x) = 10*x^(72) where x is wealth. Her friend Eleanor offers her a gamble which pays $1600 after getting
Zhixiao's utility can be represented as u(x) = 10*x^(72) where x is wealth. Her friend Eleanor offers her a gamble which pays $1600 after getting heads in a coin flip or $0 otherwise. Tassy Bank has a utility of v(x) = x. What is the expected utility of the T bank? Select one: 400 O None of the options provided 1600 800 O 100 Zhixiao's utility can be represented as u(x) = 10*x^(12) where x is wealth. Her friend Eleanor offers her a gamble which pays $1600 after getting heads in a coin flip or $0 otherwise. Tassy Bank has a utility of v(x) = x. Tassy bank offers a sure income to Zhixiao instead of Eleanor's gamble. What is the value of the sure income that Tassy Bank should offer to Zhixiao so he is indifferent between the gamble and the sure income? Select one: O 400 O 200 O None of the options provided O 100 O 1600
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