Question: Ann, whose von Neumann-Morgenstern utility-of-money function is U($x)=x, is facing the following decision problem with monetary outcomes: State: S) S S83 S4 Probability: % '%

Ann, whose von Neumann-Morgenstern utility-of-money function is U($x)=x, is facing the following decision problem with monetary outcomes: State: S) S S83 S4 Probability: "% '% KR a $43 $28 $10 $51 Act: b $18 $58 $21 $51 In the following boxes write an integer; if your calculations yield a number that is not an integer, then write the closest integer to that number (e.g. if you get 13.67 then write 14, while if you get 13.43 then write 13). (a) What is her expected utility if she takes her best action? | (b) Scenario 1: suppose that, before making her decision, she is reliably informed that the state is either s; or sz. What is her expected utility if she takes her best action in light of this information? (c) Scenario 2: suppose that, before making her decision, she is reliably informed that the state is either s3 or sg. What is her expected utility if she takes her best action in light of this information

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