A girl is given $15 by her parents. She has two options of how to spend the money. She can either save the money for future purchases or she can start a lemonade stand on her driveway. If she spends her $15 on the lemonade stand, there is a 50% probability she will lose $10 and a 50% probability she will make $12. Assuming the girl has a square root utility function, what should the girl do with the money?
a. Start her lemonade stand.
b. Save her money.
c. The outcome is the same for both choices.
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