jmwestergard4695 jmwestergard4695

15-02-2024
Business

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The decision maker now has 15,000 and two possible decisions. For decision 1, she gains 5,000 for certain. For decision 2, she loses 4,000 with probability 0.2, but gains 7,000 with probability 0.8. Which decision maximizes the expected utility of her net wealth?

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