Question: 1. Consider a person with the following utility function: u(w) = ln(w) where wealth is in units of 1,000 Which of the following prospects would

1. Consider a person with the following utility function:

u(w) = ln(w) where wealth is in units of 1,000

Which of the following prospects would be preferred?

P1(.8, 1,000, 400)

P2(.7, 2,200, 900)

P3(.6, 2,000, 1,000)

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