= 3. Consider a list of consequences C (C, C2, C3) and suppose that a decision-maker...

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= 3. Consider a list of consequences C (C₁, C2, C3) and suppose that a decision-maker has preferences over lotteries II over C that are represented by a utility function U. Consider lotteries II¹ = (1, 0, 0), II² = (0, 1, 0), II³ = (3½, ½, ½) and II¹ = (1, 0, 1). Suppose also that U(II¹) = 3, U(II²) = 1, U(II³) = 5 and U(II) = 4. Can the utility function U have the expected utility property? If so, provide a candidate utility function u over consequences in C. = 3. Consider a list of consequences C (C₁, C2, C3) and suppose that a decision-maker has preferences over lotteries II over C that are represented by a utility function U. Consider lotteries II¹ = (1, 0, 0), II² = (0, 1, 0), II³ = (3½, ½, ½) and II¹ = (1, 0, 1). Suppose also that U(II¹) = 3, U(II²) = 1, U(II³) = 5 and U(II) = 4. Can the utility function U have the expected utility property? If so, provide a candidate utility function u over consequences in C.

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To determine if the utility function U has the expected utility property we need to check if it sati... View the full answer