Your Bike Is Worth $100 and If You Park It

question 15

Essay

Your bike is worth $100 and if you park it outside at school there is a 25% chance that it will be stolen. Your utility function for money is U = (M)². Assume throughout that the bike value and money are interchangeable since you could sell the bike instantly at its value if necessary. Are you a risk taker?

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Definitions:

Gallbladder

Pear-shaped receptacle on the inferior surface of the liver; serves as a storage reservoir for bile.

Hepatic Ducts

Ducts within the liver that convey bile to the gallbladder and duodenum.

Gallbladder

A small organ located under the liver that stores and concentrates bile, a digestive fluid produced by the liver.

Stores Bile

The gallbladder is the organ responsible for storing bile produced by the liver, releasing it into the small intestine to aid in digestion.