Question: Consider the following two deals.
I. Roll a die you believe has equal probability of 1 through 6. If it lands on 1, you receive $100; otherwise you receive 0.
II. Toss a coin with equal probability of heads or tails. If it lands as heads, you receive $ 100; otherwise you receive 0.
a. Plot the probability distribution and cumulative probability distribution of each deal.
b. Test for deterministic, first-order, and second-order dominance.
c. Are you guaranteed a better outcome with one deal over the other?