Consider an individual with Bernoulli utility function given by u (w) = √w If this individual faces a lottery of L (w) where w unif [1,4], what is the certain equivalent? (round only your final answer to two decimal places if necessary)
Consider an individual with Bernoulli utility function given by u (w) = √w If this individual faces a lottery of L (w) where w unif [1,4], what is the certain equivalent? (round only your final answer to two decimal places if necessary)
Chapter1: Making Economics Decisions
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![Consider an individual with Bernoulli utility function given by
u (w) = √w
If this individual faces a lottery of L (w) where w Tunif [1,4], what is the certainty
equivalent? (round only your final answer to two decimal places if necessary)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbdf7ec95-7f2d-4cab-ab96-8c31f1bf4c94%2Fb6535acb-5c7f-44eb-ba2e-065e5e6fd789%2F2pnakma_processed.png&w=3840&q=75)
Transcribed Image Text:Consider an individual with Bernoulli utility function given by
u (w) = √w
If this individual faces a lottery of L (w) where w Tunif [1,4], what is the certainty
equivalent? (round only your final answer to two decimal places if necessary)
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