Jimmie chooses between lotteries denoteed on a set of monetary prizes X = {0, 300, 500}.

Assuming that Jimmie is an expected utility maximizer, answer the following questions.

(a) In a Marschak triangle, plot the following lotteries:

= (0.2, 0.5, 0.3)

' = (0.7, 0, 0.3)

" = 0, 0.5, 0.5

Draw the iso-expected value lines that pass through these lotteries. Recall that isoexpected value line that passes through a lottery contains all lotteries with the same expected value.

(b) Assuming that Jimmie's vNM utility is u(0) = 0, u(300) = 10, and u(500) = 30, draw his EU indifference curves that pass through lotteries , ' and " . (c) Is Jimmie risk-averse, risk-neutral or risk-loving?