Question: (a) Buying a lottery ticket has a negative expected value. Andrew is an expected utility maximiser. He purchases a lottery ticket. What risk preferences (attitude

(a) Buying a lottery ticket has a negative expected value. Andrew is an expected utility maximiser. He purchases a lottery ticket. What risk preferences (attitude to risk) does Andrew have? Explain. (2 marks)

(b) Use a graph to demonstrate your answer to part (a). (4 marks)

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