Prospect F has potential payouts of $60 with a chance of 9%, $51 with a chance of 41%, and $21 with a chance of 50%. Prospect M has potential payouts of $39 with a chance of 20%, $1 with a chance of 63%, and $168 with a chance of 17%. Prospect L has potential payouts of $70 with a chance of 1%, $68 with a chance of 16%, and $30 with a chance of 83%. If the utility function is u(x) = √4x, what is the expected utility of prospect I? Round your answer to 2 decimal places. Answer: 11.83 Check X
Prospect F has potential payouts of $60 with a chance of 9%, $51 with a chance of 41%, and $21 with a chance of 50%. Prospect M has potential payouts of $39 with a chance of 20%, $1 with a chance of 63%, and $168 with a chance of 17%. Prospect L has potential payouts of $70 with a chance of 1%, $68 with a chance of 16%, and $30 with a chance of 83%. If the utility function is u(x) = √4x, what is the expected utility of prospect I? Round your answer to 2 decimal places. Answer: 11.83 Check X
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.3P
Question
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