Untitled
unknown
plain_text
10 months ago
570 B
2
Indexable
Never
import matplotlib.pyplot as plt import numpy as np # Define the range of fees from 0 to 30 fees = np.linspace(0, 30, 100) # Calculate expected utility for each fee prob_heads = 0.6 EU = prob_heads * (80 - fees)**2 + (1 - prob_heads) * (30 - fees)**2 # Plotting the graph plt.figure(figsize=(8, 6)) plt.plot(fees, EU, label='Expected Utility') plt.xlabel('Fee (F)') plt.ylabel('Expected Utility') plt.title('Expected Utility vs. Fee for the Gamble') plt.axhline(y=2500, color='r', linestyle='--', label='Utility without Gamble') plt.legend() plt.grid(True) plt.show()
Leave a Comment