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Mathematics, 24.04.2020 18:03 leta18
Assume Mary has an exponential utility function with R=$500. Mary is given thechoice between receiving $500 with certainty (probability 1) or participating in alottery which has a 60% probability of winning $5000 and a 40% probability ofwinning nothing. Assuming Mary acts rationally, which option should shechoose? Show how you derive your answer.
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Assume Mary has an exponential utility function with R=$500. Mary is given thechoice between receivi...
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