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3. Consider the following options: Lottery A. Take $1 million for sure . Lottery B. Get $5 million with probability 0.9 (and nothing otherwise). Lottery
3. Consider the following options: Lottery A. Take $1 million for sure . Lottery B. Get $5 million with probability 0.9 (and nothing otherwise). Lottery C. Get $1 million with probability 0.1 (and nothing otherwise). Lottery D. Get $5 million with probability 0.09 (and nothing otherwise). For the DM to be consistent with Expected utility hypothesis, we must have a. A > C if and only if B > D. b. A > B if and only if D > C. c. A~B ~ C ~D. d. None of the above
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