Suppose that Stimpy's utility function U is given by U = w^0.5, where w is wealth measured in thousands of dollars. Stimpy has wealth of $20,000 but faces a probability of getting ill and losing $10,000. He has an 80% probability of being well and a 20% probability of being ill.

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The Answer of Suppose that Stimpy's utility function U is given by U = w^0.5, where w is wealth measured in thousands of dollars. Stimpy has wealth of $20,000 but faces a probability of getting ill and losing $10,000. He has an 80% probability of being well and a 20% probability of being ill.

Suppose That Stimpy's Utility Function U Is Given by U