Consider a utility function u

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Consider a utility function U for which U(O) = 0 and U(IOO) - I. Suppose that a person who has this utility function is indifferent between accepting a gamble from which his gain will be 0 dol1ars with probability 1/3 or 100 dollars with probability 2/3 and accepting 50 dollars as a sure thing. What is the value of U(50)?

Reference no: EM131830442

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