Gabbie has to decide between the following two choices: Option 1: Get $320 with probability 35.97%,...

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Gabbie has to decide between the following two choices: Option 1: Get $320 with probability 35.97%, and $84.15 with the complement probability. Option 2: Get $94.95 with 100% probability. Her utility function is: U = -e W 100 where W is her wealth. Compute her Certainty Equivalent from Option 1. -0.29 123.56 margin of error +/- 5% Gabbie has to decide between the following two choices: Option 1: Get $320 with probability 35.97%, and $84.15 with the complement probability. Option 2: Get $94.95 with 100% probability. Her utility function is: U = -e W 100 where W is her wealth. Compute her Certainty Equivalent from Option 1. -0.29 123.56 margin of error +/- 5%

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To compute Gabbies Certainty Equivalent CE from Option 1 we need to us... View the full answer