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Hannah is considering playing the following lottery: with probability 0.71 , Hannah will receive $9,825 and $1,096 with the complement probability. Hannah has also the
Hannah is considering playing the following lottery: with probability 0.71 , Hannah will receive $9,825 and $1,096 with the complement probability. Hannah has also the choice of receiving $5,883 with 100% probability. Her utility function is: U=ln(w) where w is the wealth. Suppose that Hannah starts with 0 wealth. Will Hannah play the lottery? (Answer 1 if yes, 0 if No)
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