Question: Consider two lotteries, A and B, whose random payoffs (there are 3 states only ) are distributed as follow: XA XB % $10 $14 $20

Consider two lotteries, A and B, whose random payoffs (there are 3 states only ) are distributed as follow: XA XB % $10 $14 $20 $10 $12 $20 A) Determine whether one lottery second-order stochastically dominates the other one. Which one is dominated? Justify your answer. (10 points)

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