An Expected Utility Maximizer's Preferences Between Two Bundles Contingent on Event

question 39

True/False

An expected utility maximizer's preferences between two bundles contingent on event 1 happening must be independent of what he will get if event 2 happens.

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Definitions:

Coat

An outer garment worn on the upper body for warmth or fashion, typically having sleeves and opening down the front.

Aunt

The sister of one's parent or the spouse of a parent's sibling.

Flywheels

A mechanical device specifically designed to efficiently store rotational energy.

Fixating

The act of focusing one's attention or thoughts obsessively on a particular object or subject.