Question: Suppose instead that your utility function is u(x) = r 1 . (a) What is the expected utility of rejecting the gamble? (b) What is

Suppose instead that your utility function is u(x) = r 1

.

(a) What is the expected utility of rejecting the gamble?

(b) What is the expected uhlity of accepting the gamble?

(c) What should you do?

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