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Suppose that a decision maker strictly prefers a to b and b to c. Consider the lotteries 1 = [ : 0.6 , : 0.4
Suppose that a decision maker strictly prefers a to b and b to c. Consider the lotteries 1 = [ : 0.6 , : 0.4 ] L 1 =[a:0.6,b:0.4] and 2 = [ : 0.4 , : 0.6 ] L 2 =[b:0.4,c:0.6]. Assuming that the decision maker's preferences are rational and that she compares lotteries by maximizing expected utility, which of the following is true: The following multiple-choice options contain math elements, so you may need to read them in your screen reader's "reading" or "browse" mode instead of "forms" or "focus" mode. Choice 1 of 4:The decision maker strictly prefers 1 L 1 over 2 L 2 . Choice 2 of 4:The decision maker strictly prefers 2 L 2 over 1 L 1 . Choice 3 of 4:The decision maker is indifferent between 1 L 1 and 2 L 2 . Choice 4 of 4:There is not enough information to answer this
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