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Random variables X and Y represent wealth levels for an agent if they make career choices 1 and 2, respectively. Assume their support is [a,b],
Random variables X and Y represent wealth levels for an agent if they make career choices 1 and 2, respectively. Assume their support is [a,b], where b>a>0. It is known that X second order stochastically dominates Y. Of the following vNM utility functions, an agent with which ones will for sure prefer career choice 1 to 2?
Select one or more:
a.v(x)= a x^2 + 10x + 3
b.v(x) = -1/(x+1)
c.v(x) = x^2
d.v(x)=1-e^(-x)
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