Assignment:
A Las Vegas roulette wheel had 38 different numerical values. If an individual bets on one number and wins, the payoff is 35 to 1.
The pay off table for a 10 dollar bet on one number for decision alternatives of bet and do not bet is shown in this payoff table
win loose
bet 350 -10
do not bet 0 0
A) What is the recommended decision using the expected value approach?
B) What range of utility values would a decision maker have to assign to the $0 payoff in order to have expected utility justify a decision to place the $10 bet.
Provide complete and step by step solution for the question and show calculations and use formulas.