Suppose Justin is a deltaperson with risk odds of 3 on a deal where he can win or lose $10. Suppose that Justin has bought the rights to use the Model II machine for the next roulette spin, at some...

Suppose Justin is a deltaperson with risk odds of 3 on a deal where he can win or lose $10. Suppose that Justin has bought the rights to use the Model II machine for the next roulette spin, at some value of

p. Now the company offers Justin an "upgrade" to change /? to /? + 0.1. Which of the following statements are true?

a. Justin's PIBP for the upgrade would be lower if p = 0.1 than if p = 0.9.

b. Justin's PIBP for the upgrade would be higher if p = 0.1 than if p = 0.9.

c. Justin's PIBP for the upgrade would be the same regardless of the value ofp.

d. You need to know how much the rights to use the computer cost in order to compute Justin's PIBP for an upgrade.