Homework answers / question archive / Consider the following utility function: b U(W) = W ---W 2 Given that your wealth is W= ZMW1,000 and you face a gamble: G (ZMW100, - ZMW100: 50) with 50% probability you win ZMW 100 and 50% probability lose ZMW100

Consider the following utility function: b U(W) = W ---W 2 Given that your wealth is W= ZMW1,000 and you face a gamble: G (ZMW100, - ZMW100: 50) with 50% probability you win ZMW 100 and 50% probability lose ZMW100

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Consider the following utility function: b U(W) = W ---W 2 Given that your wealth is W= ZMW1,000 and you face a gamble: G (ZMW100, - ZMW100: 50) with 50% probability you win ZMW 100 and 50% probability lose ZMW100. Answer the following a) Is this a fair game? [5 Marks]