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Explain how to get this answer 39) The above figure shows a person's u.pdf

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Explain how to get this answer 39) The above figure shows a person's utility function over wealth. They initially have $20 in wealth and face a chance that this entire amount is stolen. If this person faces a chance of theft equal to 50% of the entire amount being stolen (and 50% of nothing being stolen), then the utility of expected wealth (the utility they would receive from their expectation of wealth) is closest to: A) 0 . B) 4. C) 10 . D) 11. E) 16. F) 20 . Answer: E.

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Explain how to get this answer 39) The above figure shows a person's utility function over wealth. They initially have $20 in wealth and face a chance that this entire amount is stolen. If this person faces a chance of theft equal to 50% of the entire amount being stolen (and 50% of nothing being stolen), then the utility of expected wealth (the utility they would receive from their expectation of wealth) is closest to: A) 0 . B) 4. C) 10 . D) 11. E) 16. F) 20 . Answer: E

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  • 1. Explain how to get this answer 39) The above figure shows a person's utility function over wealth. They initially have $20 in wealth and face a chance that this entire amount is stolen. If this person faces a chance of theft equal to 50% of the entire amount being stolen (and 50% of nothing being stolen), then the utility of expected wealth (the utility they would receive from their expectation of wealth) is closest to: A) 0 . B) 4. C) 10 . D) 11. E) 16. F) 20 . Answer: E