8. ADVANCED ANALYSIS A “mathematically fair bet” is one in which the amount won will on average equal the amount bet, for example, when a gambler bets, say, $100 for a 10 percent chance to win $1000 ($100 5 .10 3 $1000). Assuming diminishing marginal utility of dollars, explain why this is not a fair bet in terms of utility. Why is it even a less fair bet when the “house” takes a cut of each dollar bet? So is gambling irrational? LO4