Question: Please answer the question Question 3 Suppose p is a stochastic choice rule and let A = {2:, y} and B = {a}, y, z}.

Please answer the question

Please answer the question Question 3 Suppose p is a stochastic choice

Question 3 Suppose p is a stochastic choice rule and let A = {2:, y} and B = {a}, y, z}. (a) Give a \"real life\" example of a situation where you expect Luce's IIA axiom to hold PAGE) 2 103(3) ' PAW) PB(y)' explanation/ story as to Why the axiom is satised]. for this pair of menus; that is [Give concrete examples of at, y, z and an (b) Now suppose that > PAW) (1) [Assume that all choice probabilities are positive: pA(x) > 0, pA(y) > 0, pB(m) > 0, pB(y) > 0, pB(2) > 0]- Give a \"real life\" example of a situation where you might expect (1) to occur (again, give concrete examples of x, y, z and an explanation/ story as to why (1) might hold). (c) Show that p from part (b) violates Luce's IIA axiom

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