1) Pandora has a utility function such that ($0) = 0 and ($10) = 1.

a) If Pandora is risk-averse, explain why($1) 0.1 and ($9) 0.9.

b) In one lottery L, the prizes $0, $1, $9, $10 are available with respective probabilities 0.4, 0.3, 0.2, 0.1. In a second lottery M, the same prizes are available with respective probabilities 0.5, 0.2, 0.1, 0.2. Explain why a risk-averse Pandora would violate rationality axioms if she expressed the preference ML.