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2. A iend of yours offers to invest all your savings, $100,000, in his startup. You nd it very hard to understand the business plan

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2. A iend of yours offers to invest all your savings, $100,000, in his startup. You nd it very hard to understand the business plan he presents to you, but your friend tells you that your $ 100,000 will \"certainly\" be worth at least $10 million within two years. Naturally, your friend may be right, but he may also be wrong you feel that you cannot estimate the probabilities for this. Consider the decision matrix below. What is wrong with this formalization? Friend is right Friend is wrong Invest $10 million $0 Don't invest $100,000 $100,000 3. Death offers you a choice between $50 and $100. He adds that if you make a rational choice, he will kill you. What should you do? (You prefer $100 to $50, and you have no desire to die.)

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