Suppose that a decision maker's risk attitude toward monetary gains or lossesxgiven by the utility function u (x) = (10,000 + X)^1/2. Suppose that a decision maker has the opportunity to buy a lottery ticket. Suppose that the lottery winning is$500,000,and the chance of winning is one in ten. Suppose we are interested in figuring out the maximum price "p" that the decision maker would buy the ticket for. Which equation would we have to set up in order to figure this out?

Possible answers:

A) (10,000-p)^1/2 = (.9)(10,000)^1/2 + (.10)(510,000)^1/2

B) (10,000)^1/2 = (.9)(10,000+P)1/2 + (.10)(510,000+p)^1/2

C) (10,000+p)^1/2 = (.9)(10,000)^1/2 + (.10)(510,000)^1/2

D) (10,000)^1/2 = (.9)(10,000-p)^1/2 + (.10)(510,000-p)^1/2