part c please

please explain part c only

(C) Now let's maximize E(U1(X)] as a function of B. (i) By considering the three different cases for p mentioned above, and with par- ticular reference to your sketches in (b), briefly explain why Bi, the optimal B under U, is as follows: 0 (don't bet) for p 10 points (ii) Compute the first partial derivative of E[U1(X)] as a function of B, and try setting it equal to 0 and solving for B. With reference to your sketches in (b), briefly explain why this standard calculus approach to maximizing a function won't work in this problem. 10 points (iii) Identify one feature of this betting strategy that seems reasonable, and two features that seem unreasonable; explain briefly. 10 points Someone offers you the possibility to play a gambling game with the following rules. First, you decide how much money you're willing to put at risk in this game: this amount let's call it A > 0 is referred to as your stake (all the monetary quantities are in dollars in this problem); think of A as a fixed positive real number in what follows. Having chosen your stake, you're allowed to bet any amount 0 10 points (ii) Compute the first partial derivative of E[U1(X)] as a function of B, and try setting it equal to 0 and solving for B. With reference to your sketches in (b), briefly explain why this standard calculus approach to maximizing a function won't work in this problem. 10 points (iii) Identify one feature of this betting strategy that seems reasonable, and two features that seem unreasonable; explain briefly. 10 points Someone offers you the possibility to play a gambling game with the following rules. First, you decide how much money you're willing to put at risk in this game: this amount let's call it A > 0 is referred to as your stake (all the monetary quantities are in dollars in this problem); think of A as a fixed positive real number in what follows. Having chosen your stake, you're allowed to bet any amount 0