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Thelma Is Indifferent Between $100 and a Bet with a 0.6

Question 44

Multiple Choice

Thelma is indifferent between $100 and a bet with a 0.6 chance of no return and a 0.4 chance of $200.If U(0) = 20 and U(200) = 220,then U(100) = :

A) 88.
B) 94.
C) 100.
D) 110.
E) 132.

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