DSE 2013..QUEST 6

[Shefali]

PLs help me with dse 2013,,,,quest 6

[akanksha]

http://discussion-forum.2150183.n2.nabble.com/DSE-2013-Paper-Discussion-td7584703i20.html

check page 2..kangkan has solved this q

[akanksha]

though his working is correct..the ans. is d

[Akshay Jain]

The utility from rs 100 is u(100) =10*100^1/2=100
and the utility from lottery is u(400*p+49*(1-p))
=p*u(400)+(1-p)*u(49)
=p*10*400^1/2+ (1-p)*10*49^1/2
= p*200+(1-p)*70
the person will buy lottery only if expected utility from lottery > utility from rs 100
p>100
p*200+(1-p)*70>30
P>3/13=51/221

[Prerna Rakheja]

image565.jpg

[Shefali]

Thanxx Prerna,Akshay,Akanksha :)