Question: For the St. Petersburg problem (Example 3.5.5), find the expected payoff if (a) The amounts won are ck instead of 2 k , where 0

For the St. Petersburg problem (Example 3.5.5), find the expected payoff if

(a) The amounts won are ck instead of 2^k, where 0

(b)The amounts won are log 2^k. [This was a modification suggested by D. Bernoulli (a nephew of James Bernoulli) to take into account the decreasing marginal utility of money—the more you have, the less useful a bit more is.]

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