Question: In the problems below, you are given the probability distribution of a stochastic variable (X) and a utility function (u(x)). Find the expected utility (U).
In the problems below, you are given the probability distribution of a stochastic variable \(X\) and a utility function \(u(x)\). Find the expected utility \(U\).
(a) X ~ B(17.9) and u(x) = 3x + 2; (b) X ~ Y(7.21) and u(x) = { 9 x < 0.3 -4 x > 0.3; -1 x 15; (e) X ~ (41.3.9.1) and u(x) = -2x + 90; (f) X(-2.73,1.21,8) and u(x) = -5x + 8.
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