Question: Assume again that your utility function is 11(x) =,Ix.Compute (i) the expected value and (ii) the expected utility of the following gambles: (a) C: You

Assume again that your utility function is 11(x) =,Ix.Compute (i) the expected value and (ii) the expected utility of the following gambles:

(a) C: You have a 1/ -l chance of winning $25 and a 3/-l chance of winning $1.

(b) G·: You have a 2/ 3 chance of winning $7 and a 1/3 chance of winning $4.

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