3. Consider the following three statements about this gamble: (I) The lottery X has expected value of zero. (II) Because the lottery X has expected value greater than zero, all of the agents would be willing to play it if there was no cost to do so (that is, the lottery ticket is free). (III) Chris would be willing to play the lottery X if there was no cost to do so, even if the probabilities were 50%/ 50% instead of 60%/40%. (a) More than one statement are correct. (b) None of the statements is correct. (0) Only statement (I) is true. ((1) Only statement (II) is true. (e) Only statement (III) is true. Background for Questions 1 - 3: Consider a gamble X such that X _ $100 with probability 0.6 $100 with probability 0.4 There are three people who are considering whether to play this gamble: o Anh has an initial wealth of $100, 000 and her instantaneous utility function over nal wealth w is u (w) = J23. 0 Beth has an initial wealth of $10,000 and her utility function is u (w) = V17). 0 Chris has an initial wealth of $200 and his utility function is u (w) = mg. 0 Dalia has an initial wealth of $101 and her utility function is u (w) =