Maria is offered two gambles. In Gamble 1, she wins 200 if a coin comes up heads and loses 100 if a coin comes up tails. In Gamble 2, she wins 20,000 if a coin comes up heads and loses 10,000 if a coin comes up tails. Maria's initial wealth is 11,000. If Maria accepts Gamble 1, she will observe the outcome before deciding whether to accept Gamble 2.

a) Draw the decision tree and indicate the optimal decisions assuming Maria is risk neutral.

b) What are the optimal decisions if Maria's utility function is given by ()=^1/2, where x is the monetary value?