Question: Anne, that has a utility function of x, has a tombola ticket that might be a winning ticket for e100 with a probability of 0.01.

Anne, that has a utility function of x, has a tombola ticket that might be a winning ticket for e100 with a probability of 0.01.

(a) Normalise Anne's utility function to [0, 1] for the interval between e0 and e400,

(b) would Anne sell the ticket for e2?

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