=+no extra utility from going to the casino.) c. Suppose that the spread (how much he can
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=+no extra utility from going to the casino.)
c. Suppose that the “spread” (how much he can win versus how much he can lose) of the gamble narrows, so that with a probability of 0.5 Hugh will lose $1,000, and with a probability of 0.5 he will win $3,000. What is the expected value of Hugh’s income?
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