Consider the decision situation below where the dollar values are winnings and the probabilities are the assessments of the deal's owner. Suppose David, who has the utility function of , owned the deal ()=exp (250)given here:

1) What is David's certain equivalent?Show your work.

2) What is the most David should pay for clairvoyance (perfect information) on uncertainty B before making decision A (Note: uncertainty D is unaffected by clairvoyance)?

3) What is the most David should pay for an expert on uncertainty B before making decision A where the expert's precision in predicting uncertainty B is and ?("B1"1)=0.8("B2"2)=0.4