As you know, utility functions incorporate a decision maker's attitude towards risk. Let's assume that the following utilities were assessed for Sarah Troublemaker:

x	u(x)
-$1,000	0
$0	30
$200	50
$500	100

1. Would a risk neutral decision maker be willing to take the following deal: 40% chance of winning $500, 20% chance of winning $200 and a 40% chance of losing $1,000?
2. Using the utilities given in the table above, determine whether Sarah would be willing to take the deal described in part a?
3. Is Sarah risk averse or is she a risk taker? What is her risk premium for this deal?