exercises
Let a>0 decision maker has a utility function for money of the form
_f t ,~“' ifr>0,
5' ‘Um ' X iff 5 o.
suppose that this decision maker is trying to decide whether or not to buy a lottery ticket for $1. The lottery ticket pays $500 with probability 0.00l, and it pays $0 with probability 0999. What would the values of rx have to be in order for this decision maker to prefer buying the ticket to not buying it?