Certainty effect, cont. Show that it is a violation of expected-util ity theory to choose (A) over

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Certainty effect, cont. Show that it is a violation of expected-util ity theory to choose (A) over (B) and (D) over (C) in Example 7.23. Notice that (C) and (D) can be obtained from (A) and (B) by dividing the probabilities by four.

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