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Problem

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question

George is seen to place an even-money

100,000 bet on the Bulls to win the NBA Finals. If George has a logarithmic utility-of-wealth function and if his current wealth is

1,000,000, what must he believe is the minimum probability that the Bulls will win?

Plain-text mathematical notation (without MathML)

George is seen to place an even-money 100,000betontheBullstowintheNBAFinals.IfGeorgehasalogarithmicutility−of−wealthfunctionandifhiscurrentwealthis1,000,000, what must he believe is the minimum probability that the Bulls will win?

Original LaTeX notation

George is seen to place an even-money $100,000 bet on the Bulls to win the NBA Finals. If George has a logarithmic utility-of-wealth function and if his current wealth is $1,000,000, what must he believe is the minimum probability that the Bulls will win?

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Source and history

upstream_id / Original problem ID: 87
task_id: 77a55a65-193d-588b-b160-3ed3b581b88c
task_key: default--test--87
task_revision_id: 1
config / split: default / test

Official source

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