Ibrahim faces the following three deals: Ibrahim is indifferent between -$100 for sure and an uncertain deal that gives $1000 with probability 0.2 and -$500 with probability 0.8. Ibrahim follows the...


Ibrahim faces the following three deals:


Ibrahim is indifferent between -$100 for sure and an uncertain deal that gives $1000 with probability 0.2 and -$500 with probability 0.8. Ibrahim follows the five Rules of Actional Thought and prefers more money to less. What is his preference order among X, Y, and Z?


a. X > Y > Z


b. Y > X > Z


c. X > Z > Y


d. Z > X > Y



May 04, 2022
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