What is johns expected utility

Reference no: EM133412161

Assignment:

John has a utility function of the form u(w) = x/w and his initial wealth 1420 is 10€. John has a lottery ticket that will be worth 50€ with probability 1 and O€ with probability 1.

a) What is John's expected utility?

b) What is the lowest pricep at which John would sell his lottery ticket?

c) Is Johan risk averse, risk neutral or risk lover?

Reference no: EM133412161

Questions Cloud

How does country of origin affect finished costs : Conduct a literature review. You should search and read other research/studies on your selected topic through books, acadHow does country of origin affect

Discuss the components of the olfactory system : discuss the components of the olfactory system: the olfactory receptors, the olfactory sensory neurons, the olfactory bulb and the cortex.

Analyse the case study carefully on how the scor : Analyse the case study carefully on how the SCOR (Supply Chain Operations Reference) model would have impacted Nampak during the price surge of aluminium when

What do you think you would find most be rewarding about : What do you think you would find most be rewarding about working with families and what do you think you would find most challenging working with families?

What is johns expected utility : What is John's expected utility? What is the lowest pricep at which John would sell his lottery ticket?

How would you instruct an individual to be more or less : How would you instruct an individual to be more or less conforming, compliant, or obedient given society's need for some conformity, compliance, and obedience

Discuss the disproportionate risk of holding inventory : Discuss the disproportionate risk of holding inventory by retailers, wholesalers, and manufacturers. Why has there been a trend to push inventory back up

Described how one ethical dilemma in the apparel industry : Described how one ethical dilemma in the apparel industry (the fashion industry) is impacting the decision that your company has made

What will a pineapple leather jacket brand presentation : What will a Pineapple Leather Jacket Brand presentation to a bank or investors contain? What might it look like?

User Account

All Pages