Thread: Stats/Econ help -- Expected Utility Calculation
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Old October 5th, 2008, 05:20 PM
icemanfan icemanfan is offline
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Quote:
Originally Posted by truxmonster View Post
What I had initially done was calculate the loss and gain of each possibility:
(1/3)(-$49.7) + (1/3)(-20) + (1/3)(70) = 1
Would it also be right if I did it like that?
Yes, with a positive answer indicating an expected gain.
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