Suppose that you have the opportunity to accept two


Suppose that you have the opportunity to accept two different jobs. The first one pays you $75,000 with certainty and the second one has a 25% chance of paying you $125,000 and a 75% chance of paying you $50,000.

Your utility function is U = Y^0.5.   

Which job do you choose? Describe the expected utility versus the expected income.

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Business Economics: Suppose that you have the opportunity to accept two
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