What combinations of options would be consistent with him being an expected utility maximize

a) choosing 1A and 2B

b) choosing 1A and 2A

c) choosing 1B and 2B

In the above question, if his choices are inconsistent with expected utility, which assumption of expected utility theory would his choices violate?

		a) Expected utility is calculated on final wealth after integrating gains and losses
		b) Expected utility is linear in probabilities.
		c) People are always risk averse.

Sam is offered the following two pairs of gambles, and chooses one preferred option from each pair. Pair 1 Prize Prize Option A Probability of Outcomes 89% 1% 10% Option B Probability of Outcomes 100% $16 $16 $0 $18 Pair 2 Prize Prize Option A Probability of Outcomes 89% 11% Option B Probability of Outcomes 90% 10% $0 $16 $0 $18