Consider the problem of the consultant of Exercise 24, and ignore the option in part (d). The possible payoffs (in dollars) are -2.250 -1,500 -750 -500 3,500 3,750 For each intermediate payoff 1.

the probabilities p such that the consultant is indifferent between receiving / with certainty and a gamble in which $3,750 is gained with probabil- ity p and $2,250 lost with probability (1p) are given in the accompanying table. If the consultant wants to maximize expected utility, how should he proceed? PAYOFF -1.500 15 P -750 -500 3,500 20 25 98