Econ398_PracticeQuestionsExam2

Econ398_PracticeQuestionsExam2 - Practice Exam 2 1 Take the...

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Practice Exam 2 1. Take the following gambles: A 1 = 0.3 $10 B 1 = 0.1 $5 0.7 $0 0.9 $0 A 2 = 0.6 $10 B 2 = x $5 0.4 $0 y $0 Assume that you prefer A 1 to B 1 , and that you prefer B 2 to A 2 . Your preferences can be summarized by some von-Neumann/Morgenstern utility function for all of the following values of (x,y) except for: For questions 2 and 3, refer to the following game: 3,0 1,2 2,3 4,1 1,1 2,1 U D R L R L 1 2 2 M M
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