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4. Bestselling author A.W. Ryder is considering a lawsuit over a copyright infringement. If the case goes to trial, she believes she is more likely

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4. Bestselling author A.W. Ryder is considering a lawsuit over a copyright infringement. If the case goes to trial, she believes she is more likely to win (60% chance), and she will then be entitled to $500K in damages (the other side will have to reimburse the cost of her lawyers). If she loses, she will be stuck with $300K in legal expenses. There is also a strong possibility (80%) that it will turn out best to settle before a trial, and her lawyers think that the settlement would be for $250K (but she would still have $150K in legal expenses). Suppose A.W. Ryder's utility function for additional wealth w is either (i) u(w) = Vw or (ii) u(w) = -. A.W. Ryder also feels that taking the trouble to file the lawsuit has a disutility of -10 for her. If she decides to do it anyway, which of these must be her utility function? If she decides not to file, then which is her utility function

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