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Irene's Utility of Income Function Is Irene Is Offered

Question 12

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Irene's utility of income function is Irene's utility of income function is Irene is offered the following game of chance. The odds of winning are <sup>1</sup>/<sub>100</sub> and the payoff is 75 times the wager. If she loses, she loses her wager amount. Calculate Irene's expected utility of the game. Irene is offered the following game of chance. The odds of winning are 1/100 and the payoff is 75 times the wager. If she loses, she loses her wager amount. Calculate Irene's expected utility of the game.

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