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You prefer a sure thing of $200 to a gamble with a 70% chance of winning $200, a 20% chance of winning $300, and a
You prefer a sure thing of $200 to a gamble with a 70% chance of winning $200, a 20% chance of winning $300, and a 10% chance of winning $50. You also prefer a gamble with a 2/3 chance of winning $300 and a 1/3 chance of winning $50 to a sure thing of $250. Are your preferences consistent with von Neumann and Morgenstern's axioms for maximizing expected utility?
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