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(i) To the right of the Marschak-Machina triangle below you will see a list of 10 prospects. Carefully redraw this diagram and clearly show the

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(i) To the right of the Marschak-Machina triangle below you will see a list of 10 prospects. Carefully redraw this diagram and clearly show the position of each prospect in the triangle. [10 marks] prob(100) A: (100, 0.2; 0, 0.8) B: (40, 0.8; 0, 0.2) C: (100, 0.15; 40, 0.2; 0, 0.65) 0.8 D: (100, 0.85; 0, 0.15) E: (40, 1) F: (100, 0.05; 0, 0.95) 0.6 G: (100, 0.8; 40, 0.2) H: (100, 0.5; 0, 0.5) 0.4 J: (40, 0.6; 0, 0.4) K: (40, 0.2; 0, 0.8) 0.2 0 0.2 0.4 0.6 0.8 1 prob(0) (ii) Sally is an expected utility maximiser who is indifferent between A and C. Which four other pairs is she indifferent between? Explain how you know. [4 marks] (ill) Tom is indifferent between E and H, and between A and J, and between F and K. How would you characterise his preferences? [2 marks]

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