Consider the following outcomes:

g1= going on a cruise in the Mediterranean

g2= a grade of A+ in this class

g3= $1000

g4= dinner with a CEO

Parker says that his ranking of the outcomes is: g1> g2> g3> g4but that he is indifferent between (g2,1) and (g1,g4,0.8) as well as between (g3,1) and (g1,g4,0.5). So, assuming this satisfies the axioms of expected utility theory, which lottery (A or B) will he chose? (Hint: Normalize his utility function to U(g1) = 1.)

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