(Answered) A consumer has utility uxxms and a base wealth of 100k she

Economics

A consumer has utility u(x)=x^ms and a base wealth of 100k she is about to take part in a gamble that will give her 10k bringing her to 110k if a fair die rolls less than 3 (probablity 1/3), but will cost her 5k leaving her with 95k otherwise

What is the certainty equivalent of participating in this gamble?
How much would she be willing to pay to not have to take this gamble?

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Business Economics, Economics

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