An Individual Whose Utility Function Is Given By $U \left( W _ { 1 } , W _ { 2 } \right) = min\left( W _ { 1 } , W _ { 2 } \right)$

question 13

Multiple Choice

An individual whose utility function is given by $U \left( W _ { 1 } , W _ { 2 } \right) = min\left( W _ { 1 } , W _ { 2 } \right)$ (where W_i is wealth in state i) will

• A)never gamble no matter how favorable the odds.
• B)only gamble if the expected value of the bet is positive.
• C)gamble if the bet is not too unfair.
• D)always gamble,no matter how unfavorable the odds.

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