Let g(s)defined in Section 3.2 equal 1e s for s > 0, and s for s
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Let g(s)defined in Section 3.2 equal 1−e−s for s > 0, and s for s ≤ 0. Graph g(s). Let c be the certainty equivalent of a r.v. X. Is it true that c≤E{X} ? Estimate the certainty equivalent for X equal to 1 or 0 with equal probabilities.
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