Problem $1$

Consider a person with the following utility function:

$u(w)=ln(w)$ where wealth is in units of $1,000$

Which of the following prospects would be preferred?

$P1(0\mathrm{.}40,1,000,400)$

$P2(0\mathrm{.}80,2,200,200)$

$P3(0\mathrm{.}50,2,000,1,000)$

Problem $2$

Will has the following utility function:

$u(w)=w^{{?}^{{?}^{?}}}\mathrm{.}5or$ the square root function

Which of the following prospects would he prefer?

$P1(0\mathrm{.}60,3,000,400)$

$P2(0\mathrm{.}70,1,200,600)$

$P3(0\mathrm{.}80,2\mathrm{.}000,1,000)$