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Suppose there is a fair coin toss. The cost to enter the gamble is $10. The payoffs are $15 for a win; $0 for a

  1. Suppose there is a fair coin toss. The cost to enter the gamble is $10. The payoffs are $15 for a win; $0 for a loss. Assume your utility function to be determined as follows: 
  2. U(W) = 10 + ln(10 + 0.75W). 

What is the amount that will make you indifferent between the gamble and a certain pay?


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