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1. [10 marks]. John and Mary are brother and sister. John's initial wealth is 36,000, while Mary's is 42,000. For both of them, the utility
1. [10 marks]. John and Mary are brother and sister. John's initial wealth is 36,000, while Mary's is 42,000. For both of them, the utility derived from wealth can be described using the exact same utility function. They are both forced to buy a "Lucky Day" scratch card for 2. If they have a winning card (this happens with a probability of 1/100), they will receive 200, othenlvise, they will not receive anything. If John's utility decreases more than Mary's utility after buying the scratch card but before any of them had a chance to actually scratch it, what can we infer about their risk preferences
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