Consider Bob's decision problem: Sunny Cloudy Rainy Beach 2 3 2 Park 3 3 2 Mall 0 2 x Suppose the probability of Sunny is 0.25, the probability of Cloudy is 0.25, and the probability of Rainy is 0.5. What is the smallest value of x for which Mall is an expected utility maximiser (that is, Mall is at least the equal-best choice)? Round your answer to one decimal place (e.g. 0.5).

Consider the following decision problem of Alice:Sunny Cloudy RainyBeach 1 2 1Park 2 2 1Mall 1 2 3Suppose the probability of Sunny is 0.4 the probability of Cloudy is p ∈ [0, 0.6] and the proba-bility of Rainy is 0.6 − p. For what values of p is Mall an expected utility maximizer?[Write your answer as an interval; e.g.: [0.2, 0.4] or (0.3, 0.5], etc.]

Assume Alice’s preferences satisfy the axioms of the expected utility theorem. A risky assetyields $8 utility in a bull market, while it yields $3 utility or $0 utility with equal probability in abear market. The probabilities of a bull or a bear market are the same (i.e., 50%). What is Alice’sexpected utility from the risky asset?[Write your answer as a number with a maximum of two decimals, lik

Which is true for the following decision problem of Alice?  Sunny Cloudy RainyBeach 1 2 2Park 2 3 3Mall 1 3 1 A. Beach is a strongly dominated choice for Alice B. Alice has no strongly dominated choices C. Mall is a strongly dominated choice for Alice D. Park is a strongly dominant choice for Alice

Assume that product Alpha and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on Alpha and Beta. She buys 8 units of Alpha and 12 units of Beta. The marginal utilities of the last unit of Alpha and Beta that she purchases are 40 utils and 20 utils, respectively. This indicates thatMultiple ChoiceEllie should make no change in consumption.given another dollar, Ellie should buy an additional unit of Beta.in order to maximize utility, Ellie should buy more Beta and less Alpha.in order to maximize utility, Ellie should buy more Alpha and less Beta.

Prospect pair 1 -- choose between: W: (0.2, $4000) X: (0.25, $3000) Prospect pair 2 -- choose between: Y: (0.8, $4,000) Z: ($3000) Part (a): What is the expected utility for Prospect pair 1 (X)? (Note: Please enter your answer rounded to the nearest whole dollar. For example, if your answer is $1,234.89, please input 1235 in your answer box.) (1 mark) Part (b): Based on the expected utility theory, which Options (W or X) would you choose for Prospect pair 1? (Note: If your answer is Option W, you only need to input W in your answer box.) (1 mark) Part (c): Ignoring the expected utility theory, would most people choose Options Y or Z from Prospect pair 2? (Note: You only need to input Y or Z in your answer box.) (1 mark) Part (d): Please explain your rationale for your answer in Part (c) in less than 50 words. (2 marks)