Consider a decisionmaker whose preferences under uncertainty can be represented within the expected utility maximization framework. To simplify our calculations, we will assume that her cash utility function v (.) satisfies v ($0) = 0 and v ($200) = 1. This decisionmaker is indifferent

• between receiving $50 for sure (with probability 1) and receiving $200 with probability 2/5 (hence, $0 with probability 3/5 )
• between receiving $100 for sure and receiving $200 with probability 3/5 (hence, $0 with probability 2/5 )
• between receiving $150 for sure and receiving $200 with probability 4/5 (hence, $0 with probability 1 /5 )

Find out which of the two lotteries below will be preferred to the other one for this decisionmaker:

• Lottery P: $50 (with probability 0.3), $100 (with probability 0.3), $150 (with probability 0.35) and $200 (with probability 0.05)
• Lottery Q: $0 (with probability 0.15), $100 (with probability 0.35), $150 (with probability 0.3) and $200 (with probability 0.2)