4. Which integer is not a perfect square?
186
100
169
289

He will sell at 5

Step-by-step explanation:

Compute expected utility with the ticket:

1) EU = (0.5 × 30)+ (0.5 × 20) = 25 utils

We have to find the wealth level that provides the same utility as we have with the ticket:

Since U(x) = x

        x = 25

He will sell at = 5

2) EU = 0.5 × + 0.5 ×

          = 650 utils

since U(x) =

or             x =

               x =

              x = 25.495