Consider a utility function U for which U (0) = 5, U (1)
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Consider a utility function U for which U (0) = 5, U (1) = 8, and U (2) = 10. Suppose that a person who has this utility
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Consider a utility function U for which U (0) = 5, U (1) = 8, and U (2) = 10. Suppose that a person who has this utility function is indifferent to either of two gambles X and Y, for which the probability distributions of the gains are as follows: Pr(X = ?1) = 0.6, Pr(X = 0) = 0.2, Pr(X = 2) = 0.2; Pr(Y = 0) = 0.9, Pr(Y = 1) = 0.1. What is the value of U (?1)?
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