Question: Consider two r.v.s both taking on values 1,2,3,4. For the first r.v., the respective probabilities are 0.1, 0.2, 0.5, 0.2, for the second, 0.1, 0.3,

Consider two r.v.’s both taking on values 1,2,3,4. For the first r.v., the respective probabilities are 0.1, 0.2, 0.5, 0.2, for the second, 0.1, 0.3, 0.3, 0.3. Which r.v. is better in the EUM-riskaversion case? Justify the answer.

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