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Gamble a Results in $10 with Probability 0

Question 25

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Gamble A results in $10 with probability 0.4 and $30 with probability 0.6.Gamble B results in $20 with probability 1.If an individual prefers Gamble A to Gamble B, the independence axiom implies that he prefers Gamble C that gives $0 with probability 0.5, $10 with probability 0.2 and $30 with probability 0.3 to Gamble D that results in $20 with probability 0.5 and $0 with probability 0.5.

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