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Ann and Bob are both choosing between two distributions over outcomes ( 1, 2, 3,4) . The distribution D, = (2/5,0,0,3/5) and the distribution D,
Ann and Bob are both choosing between two distributions over outcomes ( 1, 2, 3,4) . The distribution D, = (2/5,0,0,3/5) and the distribution D, = (0, 1/2, 1/2, 0) . Ann is either risk averse or risk neutral. Bob is either risk averse or risk neutral. Ann chooses D , and Bob chooses D,. Based on this information, O a. Ann and Bob are both risk averse. O b. Ann is risk averse, but Bob may or may not be. O c. We can't tell if either Ann or Bob is risk averse or not. O d. Bob is risk averse, but Ann may or may not be
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