An individual, whose current assets amount to Rs 80,000, has the following utility function over the relevant portion of his overall assets scale

(a) He is offered a bet in which he has a sixty per cent chance of gaining Rs 20,000 and a forty per cent chance of losing Rs 20,000. Should he accept the offer?

(b) Alternatively, he is offered participation in two bets each involving a gain of Rs 10,000 with a probability of 0.6 and a loss of Rs 10,000 with a forty per cent chance. Should he decide differently than in case (a)?

Assets (tens of thousands of Rs) : 6 7 8 9 10 11 Utility 0.24 0.38 0.50 0.60 0.67 0.72