-Assume the Information in the Table Regarding the Probability and

question 2

Multiple Choice

$\begin{array}{|l|l|l|l|l|}\hline \text { Investment } & \text { A } && \text { B } \\\hline \text { State description } & \text { Bad state } & \text { Good state } & \text { Bad state } & \text { Good state } \\\hline \text { Probability } & 0.25 & 0.75 & 0.25 & 0.75 \\\hline \text { Payoff } & 200 & 220 & 400 & 435 \\\hline\end{array}$
-Assume the information in the table regarding the probability and payoffs of assets A and B relates to an investor who has a log utility function.What is the expected utility of asset B?

• A) \( 5.991 \)
• B) \( 6.054 \)
• C) \( 6.075 \)
• D) \( 6.122 \)

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Definitions:

Hidden Observer

A theoretical part of the mind proposed by Ernest Hilgard to explain hypnotic phenomena, suggesting a part of the mind remains aware and observant during hypnosis.

Ernest Hilgard

An influential psychologist known for his research on hypnosis, particularly the theory that a "hidden observer" part of the brain is aware of what happens to the person during hypnosis.

Sleep Deprivation

A condition resulting from inadequate quality or quantity of sleep, affecting cognitive functions, physical health, and emotional well-being.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception.