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Aladdin’s greed prevents him from truly caring for the Genie. Strong: Claim Weak: Not a Claim
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Jun 28, 2023
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Aladdin’s greed prevents him from truly caring for the Genie.
Strong: Claim
Weak: Not a Claim
English
middle-school
Vignesh Jayavel
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Vignesh Jayavel
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I think it’s Not a Claim
Christian Hudon
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Jul 4, 2023
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Christian Hudon
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Suppose Alex has utility function, where W is wealth in bitcoins: U (W ) = 12√W ∀ W ≥ 0 (1) = 3 4 W 3 ∀ W < 0 (2) Alex has just found a genie’s lamp and has wished for a memory stick of bitcoin since Alex has nothing at the moment but the clothes on their back. Alex knows the genie may try to trick them so Alex has assigned a 25% subjective probability the genie will find a way to take away their clothes which would cost 4 bitcoin to replace (the clothes are actually a BAPE NFT...) (W = −4, assume they can buy on credit and have negative wealth). In addition, Alex has assigned a 50% subjective probability to getting a medium amount of 16 bitcoin (W = 16), and a 25% probability of getting a large amount of 100 bitcoin (W = 100). A. What is the expected value of Aladdin’s gamble?
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Suppose Aladdin has utility function: U(W) = 8√W Ɐ W >= 0 = -W^2 Ɐ W < 0 Aladdin has just found the genie's lamp and has wished for a bag of gold since he has nothing at the moment but the clothes on his back. He knows the genie may try to trick him so he has assigned a 25% subjective probability the genie will nd a way to take away his clothes which would cost 4 gold to replace. In addition, he has assigned a 50% subjective probability to getting a medium bag of 16 gold, and a 25% probability of getting a large bag of 100 gold. Required: a. What is the expected value of Aladdin's gamble? b. What is the expected utility of Aladdin's gamble?
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Dec 25, 2022
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