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Problem 2. This is adapted from our textbook. Let X -[x1,x2, x3,x4 be a set of four monetary prizes, where 0 < x1 < x2 < 13 < x4. Stowell claims he is an expected utility maximizer. He is observed to choose the lottery π-(1, 1, 1, ) over the lottery π,-(0Ί, , Ỉ ). Based 1 11 7 4 24 24) Based on that observation, can you conclude that he is truly an expected utility maximizer, as he [10 points] 443 6 claims? Justify your answer. Hint: normalize the vNM utility function by setting u(x)0 and u(x4) 1, and take for granted that Stowells preferences over monetary prizes are strictly monotone

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