Question: b) Using the indiffence probabilities below, calculate the utility for $10,000 and $100,000. Let the utility of $0 be 10 and the utility of $200,000

b) Using the indiffence probabilities below,

b) Using the indiffence probabilities below, calculate the utility for $10,000 and $100,000. Let the utility of $0 be 10 and the utility of $200,000 be 0. (Note: Because the data are costs, the best payoff is 50.) Indifference Probability 10,000 100,000 p = 0.50 Cost p=0.99 Cost Utility $0 10 $10,000 10000 $100,000 $200,000 0

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