Question: Consider two gambles, each with outcomes $10, $20, $30, and $40. Gamble 1 has probabilities for these outcomes and gamble 2 has probabilities and. Suppose

Consider two gambles, each with outcomes $10, $20, $30, and $40. Gamble 1 has probabilities for these outcomes and gamble 2 has probabilities and. Suppose that Gamble 2 stochastically dominates Gamble 1. Thus, , , and . Show that anyone who maximizes rank-dependent expected utility must prefer Gamble 2 to Gamble 1.

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