8. Advanced Analysis A mathematically “fair bet” is one in which a gambler bets, say, $100 for a 10 percent chance to win

$1000 ($100 = 0.10 × $1000). Assuming diminishing marginal utility of dollars, explain why this is not a fair bet in terms of utility. Why is it an even less fair bet when the house takes a cut of each dollar bet? So is gambling irrational? [LO7.4]