Expected Utility

Averages of utilities, not utility of averages

The independence axiom

Computing a worked gamble

Probability matching in the budget

Which expression is the expected utility of the bundle (c1, c2) with probabilities (pi1, pi2)?

What does the independence axiom assert?

For v the square root and the 50-50 states 225 and 25, what is the expected utility?

For expected utility, what is the indifference curve slope at the certainty diagonal, and why does it match fair odds?

For v the square root and 50-50 states 100 and 36, compute the expected utility, and write the number.

Same gamble, compute v of the expected wealth, that is the square root of 68, rounded to two decimals, and write the number.

For v the square root and 50-50 states 49 and 169, what is the expected utility?

For the 50-50 gamble over 225 and 25, the mean wealth is 125. How does the utility of 125 compare with the expected utility of 10?

With loss probability one quarter, what is the expected-utility indifference curve's slope at the certainty diagonal?

For v the square root and 50-50 states 16 and 36, compute the expected utility, and write your answer's match among the options.

For v the square root and 50-50 states 4 and 16, compute the expected utility, and write the number.

For the 50-50 gamble over states 16 and 36, compute the square root of the mean wealth 26, rounded to two decimals, and write the number.