Question: Show that if an individual has a Bernoulli utility function of the form then her utility from a distribution is determined by the mean and
Show that if an individual has a Bernoulli utility function of the form then her utility from a distribution is determined by the mean and variance of the distribution and by these alone. Note: < 0 for concavity of u and we limit the distribution to values no greater than-/28 as u is decreasing after this.?
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