Question: Suppose that a decision maker s risk attitude toward monetary gains or losses x given by the utility function u left parenthesis x right parenthesis

Suppose that a decision makers risk attitude toward monetary gains or losses x given by the utility function u left parenthesis x right parenthesis equals left parenthesis 10000 plus x right parenthesis to the power of bevelled 1 half end exponent . Suppose that a decision maker has been given a lottery ticket for free. Suppose that the lottery winning is $500,000, and the chance of winning is one in a thousand. What is the minimum price that the decision maker would be willing to sell the ticket for?
$1.23
$123.2
$12.23
$122.3
$142
$1.42

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