Prospect Y = ($7,0.25: $17, 0.75) If Will's utility of wealth function is given by u(x) = 20.25, what is the value of CE

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Prospect Y 7 0 25 17 0 75 If Will S Utility Of Wealth Function Is Given By U X 20 25 What Is The Value Of Ce 1 (32.72 KiB) Viewed 38 times

Prospect Y = ($7,0.25: $17, 0.75) If Will's utility of wealth function is given by u(x) = 20.25, what is the value of CE(Y) for Will? (In other words, what is Will's certainty equivalent for prospect Y?) (The certainty equivalent represents the maximum amount a person would be willing to pay to acquire a risky prospect, and equivalently, the lowest price for which they would be willing to sell a risky prospect if they already owned it) (Note: The answer may not be a whole number; please round to the nearest hundredth) (Note: The numbers may change between questions, so read carefully)