What exactly does maximizing expected utility yield in these particular cases? For one, I could be convinced not to take A (0.01 could be too risky) but I would never take B.
What exactly does maximizing expected utility yield in these particular cases?
For one, I could be convinced not to take A (0.01 could be too risky) but I would never take B.
Depends on how much money you currently have. According to the simple logarithmic model, you should take gamble B if your net worth is at least $2.8M.
Depends on how much money you currently have. According to the simple logarithmic model, you should take gamble B if your net worth is at least $2.8M.