Is the quadratic utility function appropriate for expected util... | Filo
Is the quadratic utility function appropriate for expected util... | Filo
6 个月之前
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A consumer has an expected utility function given by u(w)=lnw He is offered the opportunity to bet on the flip of a coin that has a probability πof coming up heads. If he bets x, he will have w x if head comes up and w-x if tails comes up. Solve for the optimal x as a function of πWhat is his optimal choice of x when π=1 / 2 ? | Numerade
A consumer has an expected utility function given by u(w)=lnw He is o…
2020年6月16日
numerade.com
problem 6 your utility function is u ln2c where c is the amount of consumption you have in any given period your income is 40000 per year and there is a 2 chance that you will be involved in 36295
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