An individual has the following utility function:u(w)=w.5 where w=wealth. Using expected utility, order the following prospects in terms of preference, from the most to the least preferred;P1(.8,1000,600);P2(.7,1,200,600);P3(.5,2000,300);B. WHAT is the certainty equivalent for prospect P2?;C. Without doing any calculations,would the certainty equivalent for prospect P1 Be larger or smaller?why?
Paper#25395 | Written in 18-Jul-2015Price : $27