6 Consider the four points A, B, C, and D in Figure 16.

Assume that more of each attribute is desirable and that a decision maker’s utility function exhibits mui. Consider the following two lotteries

poorly. Suppose that Germany will suffer defeat if it performs poorly on either front. If these attributes exhibit mui, what would be the sign of k3?
e General Motors has domestic and international divisions.
Let attribute 1 profits in the domestic division and attribute 2 profits in the international division.
Suppose General Motors is reasonably happy if at least one division has a good year but is very unhappy if both divisions have a bad year. If these attributes exhibit mui, what would be the sign of k3?

L- -2 12 A and L- C a Show that if k3 > 0, then LipL2. b Show that if k < 0, then LpL. 12 12 B D c Show that if the decision maker exhibits additive in- dependence (k = 0), then LiL. d Let attribute 1-performance of Germany on the eastern front near the end of World War II, and attribute 2 = performance of Germany on the western front. A high level of an attribute means that Germany did well, and a low level of an attribute means that Germany did