Question: 1. What is certainty equivalent? and HOW do we calculate it? 2. Why do we use it? and HOW it affects the decision-making process? 3.

 1. What is certainty equivalent? and HOW do we calculate it?

1. What is certainty equivalent? and HOW do we calculate it? 2. Why do we use it? and HOW it affects the decision-making process? 3. Give a numerical example

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