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Pascal's current wealth is $140 and he has exponential utility with 0.002. He is considering the purchase of a lottery that mat costs SX There la a 40% chance that the ticket will have a St0 payoff, otherwise it will be worth $0.

(a) What would Pancar's utility be if he did not purchase the ticket?

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(b) What woula Pascal's utility be it he purchased the ticket and won?

utles

to What would sa y be if he purchased the ticket and kost?

What is me manum price that Pascal would be willing to pay for the lottery ticket? Piness round your aner to he neart cemt

Maximum Price 1