Donna just paid $800 for a new iPhone. Apple offers a two year extended warranty for $200 and Donna is considering purchasing it. She has utility given by U(X)=√X. Without the extended warranty, the iPhone becomes worthless if it breaks. What is the minimum probability, p, that the iPhone breaks in the next two years that will cause Donna to prefer to purchase the extended warranty? p=_____________ If the probability that her phone breaks is p=0.25, will Donna will prefer to buy or not buy the warranty?

Q: Q2: Consider a person who is thinking about whether to engage in a life of crime. He knows that, if…

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Q: ora has a monthly income of $20,736. Unfortunately, there is a chance that she will have an accident…

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Q: utility

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