nsider the "St. Petersburg paradox" game: Toss a coin. If heads on this first throw, the payoff = $1 and the game is over. If not, toss the coin again. If heads on the second throw, the payoff = $2 and the game is over. If not, toss the coin again. If heads on the third throw, the payoff = $4 and the game is over. The game continues this way If the first time heads shows is on throw k, the payoff S2 and the game is over Suppose an individual with utility function U(z) -z1/2 What is the expected utility to this individual, of playing the game? What is the certainty equivalent of playing the game?