Question: Choice under uncertainty exercise D o this exercise i n preparation for class o n Tuesday, October 2 9 , 2 0 2 4 ;

Choice under uncertainty exercise
Do this exercise in preparation for class on Tuesday, October 29,2024; I will start the lecture assuming
you have done so.
Basics: Utility of money function and expected utility.
Consider a lottery with two possible payoffs: {yy1=49,yy2=400}.
Recall: the expected value of a lottery depends only on the payoffs and the probabilities.
a

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