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  • Suppose, for example, that objective here is to maximize your lifetime, and that your expected lifetime, should you survive the game, is a function of your remaining wealth W, say f(W).For question 1, then, without the payoff, your expected future lifetime becomes:L = (1/3)*0 + (2/3)*f(W) = (2/3)*f(W), andL = f(W-P) with the payoff, so P is a good bet so long as f(W-P) > (2/3)*f(W).For question 2,
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