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An economicst named Mac is o ered a choice between the follwing gambles with 2 outcomes each Gamble A Win with 08 probabiltiy of sucess and receive

An economicst named Mac is o?ered a choice between the follwing gambles with 2 outcomes each. -Gamble A: Win with 0.8 probabiltiy of sucess and receive $4000 or lose and receive $0. -Gamble B: Win with 1 probabiltiy of sucess and receive $3000 or lose and receive $2700. Suppose she prefers B to A. Based on the informatoin, which of the gambles below will Mac choose if Mac’s utility satisfy the Expected Utility Theorem(EUT) and she prefers higher payo? to less? -Gamble C: Win with 0.2 probabiltiy of sucess and receive $4000 or lose and receive $0. -Gamble D: Win with 0.25 probabiltiy of sucess and receive $3000 or lose and receive $0.

May 01 2020 View more View Less

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