By using the expected utility theory approach with u(x)=x2, choose the optimal decision for three different possible outcomes with probabilities

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A: Total wealth = $225 Corn: If good weather, then Income (Icg) = $675 If bad weather, then Income…

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Q: Question 32 32. Ann maximizes the utility U(со, с1, с2) — u(со) + би(ст) + 82u(с2) with u(c;) = c;…

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Q: Using the exponential utility function with α = 0.001, determine which premium is higher: the one…

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A: Given value of wealth = 225 Utility function = 5 √C Income from planting corn:- 675 with p=0.7…

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A: Since you have asked a question with multiple parts, we will solve the first question for you. If…