Jamal has a utility function u=(w^1/2) , where w is his wealth in millions of dollars and u is the utility he obtains from that wealth. in the final stage of a game show, the host offers jamal a choice between (a) $4 million for sure, or (b) a gamble that pays $1 million with a probability of 60% or $9 million with a probability of 40%.

a. graph jamal's function. is he risk averse? explain.

b. does a or b offer jamal a hgigher expected prize? explain your reasoning with appropriate calculations. (hint: the expected value of a random variable is the weighted average of the possible outcomes, where the probabilities are the weights.)

c. does a or b offer jamal a higher expected utility? again, show your calculations.

d. should jamal pick a or b? why?

the answer to question 1 is -8, 28.

step-by-step explanation:

isocolese triangle

we know that the line connect a and b is the hyptonuse

so first find the hypotonuse length using the distance formula, call the length c

since it is an isocolese triangle, the lengths of the legs are the same

using pythagorean theorem,

in this case, a=b since isocolese triangle so we get

or

we can find c so we can find the distances

we know that if we draw 2 circles, each has center at a and b, and find where they intersect, we can the 2 possible locations for c

if a has center at (xa,ya) and b has center at (xb,yb), then we can solve where

and

intersect to find where they intersect

i'm not going to put an example because i have to go to class. i hope this explanation is enough

that would be a prism, if not right, feel free to correct me

his wife got 46,000

his son gets 11,500

each charity gets 6,900

hope this