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1. Joe has a utility function of U(x) = √ x 3 . He is offered a gamble that pays him 0 ≤ X ≤ 9 with probability 0.75 and 16 ≥ Y ≥ 9 with probability 0.25. Joe has $9 that he either can keep or use to buy the bet.
a. Will Joe ever take the bet? Justify your answer mathematically. (Basically find one value of X and Y in the range for which Joe will accept, if such values exist.)
b. Will Joe always take the bet? Justify your answer mathematically. (Basically find one value of X and Y in the range for which Joe will not accept, if such values exist.)
Based on the assigned reading from the text, identify one piece of legislation (legislative action) that impacts human services programs.
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