Illustrate what relationship must hold between x and p

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Reference no: EM1344603

Lottery A pays x with certainty. Lottery B is ($10, p; $20, 1 - p) where
0 < p < 1.
a. For what values of x and p will A first order stochastically dominate B?
b. Illustrate what relationship must hold between x and p so that A second order stochastically dominates B?

Reference no: EM1344603

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