Problem 2: Ann has a utility function u = \\w, where w is wealth. She is asked to enter a business venture, which involves a 50-50 chance of an income $900, or $400, and so the expected value of income from the venture is $650. 1. If asked to pay a "fair price" of $650 in order to take part in the venture, would she accept? 2. What is the largest sum of money she would be prepared to pay to take part in the venture