Question: Suppose Mr Spock (a rational person) has a utility function u(x)=x0.5 and he has been offered the choice between $4 (sure gain) and a gamble

Suppose Mr Spock (a rational person) has a utility function u(x)=x0.5

Suppose Mr Spock (a rational person) has a utility function u(x)=x0.5 and he has been offered the choice between $4 (sure gain) and a gamble G which offers a 0.6 probability of winning $10 and a 0.4 probability of winning $2. What is the expected value of gamble G? What is the expected utility of gamble G? What is the expected utility of the $4 (sure gain)? Which offer would Mr. Spock select? Print 1 in the answer box if you select gamble G. Print 2 in the answer box for the $4 sure gain. What is the certainty equivalent of the gamble G

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