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Business, 10.06.2021 16:00 susie1968

Suppose you have $100 of endowment, and you are offered a chance to buy a lottery which costs $36. The lottery has 43% of chance to win a prize of $G, or you just lose and get nothing. Suppose your utility function on wealth is u(w)=w^1/2. What is the least prize size G that you will be willing to buy the lottery? (Round to the second digit after decimal point.)

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Suppose you have $100 of endowment, and you are offered a chance to buy a lottery which costs $36. T...
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