Question: 1. Considering Maria's utility function U(W) = 2W, and her possible wealth outcomes from a gamble (either $900 with a 50% probability or $625 with

1. Considering Maria's utility function U(W) = 2W, and her possible wealth outcomes from a gamble (either $900 with a 50% probability or $625 with a 50% probability), what is the expected utility of taking the gamble? A) 72 utils B) 55 utils C) 80 utils D) 54 utils 12. Continue with question 11. Suppose that Maria is forced to either make the gamble or pay an insurance premium (P) to avoid the gamble and retain a wealth level of $800P. What is the maximum premium that Maria is willing to pay? A) 44 B) 49 C) 52 D) 67

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