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

Assume Alice’s preferences satisfy the axioms of the expected utility theorem. A risky assetyields $6 utility in a bull market, while it yields $3 utility or $1 utility with equal probability in abear market. Alice’s expected utility from the risky asset is $3. What is the probability of a bullmarket?[Write your answer as a nonnegative number equal or less than 1, with a maximum of twodecimals, like 0.12.]

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.]

state the law of marginal utility. explain the significance of utility maximization focus on three commodity and finally explain how consumer allocate their resources to maximizing their utility

Explain what type of utility function this means we canuse to represent her preferences