Background for Questions 1 - 3: Consider a gamble X such that X _ $100 with probability 0.6 _ $100 with probability 0.4 There are three people who are considering whether to play this gamble: o Anh has an initial wealth of $100, 000 and her instantaneous utility function over nal wealth to is u (w) = \\/1_u. 0 Beth has an initial wealth of $10,000 and her utility function is u (w) = . 0 Chris has an initial wealth of $200 and his utility function is u (w) = 102. o Dalia has an initial wealth of $101 and her utility function is u (w) = \\/'LU. 1. Suppose the players need to purchase a lottery ticket to play the gamble. Among the values below, which one represents Beth's willingness to pay for the gamble? That is, what is the highest price P for the lottery ticket that would still make it rational for her to purchase it? Hint: it might be easier to check if the numbers work than solve the problem directly). (a) Aproximately $2.6 (b) Aproximately $19.8 (c) Aproximately $50.4 ((1) More than one answer is correct. (e) None of the answers is correct