Suppose that the outcome space contains three outcomes (1,2,3). Consider the following four lotteries: A B...

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Suppose that the outcome space contains three outcomes (1,2,3). Consider the following four lotteries: A B ==== C = (0.3, 0.7,0) (0,0.8,0.2) (0, 0.5,0.5) D = (0.6, x,y) Assume that a decision maker is indifferent between A and B, and is indifferent between C and D. Suppose the decision maker's preferences over lotteries satisfy the Independence Axiom, find out x,y. (Hint: You can use graph to get intuition.) Suppose that the outcome space contains three outcomes (1,2,3). Consider the following four lotteries: A B ==== C = (0.3, 0.7,0) (0,0.8,0.2) (0, 0.5,0.5) D = (0.6, x,y) Assume that a decision maker is indifferent between A and B, and is indifferent between C and D. Suppose the decision maker's preferences over lotteries satisfy the Independence Axiom, find out x,y. (Hint: You can use graph to get intuition.)