Question
2. Consider an urn containing 3 red balls and 6 other balls that are either blue or yellow. It is unknown how many blue or
2. Consider an urn containing 3 red balls and 6 other balls that are either blue or yellow. It is unknown how many blue or how many yellow balls there are, but it is known that the total number of blue balls plus the total number of yellow equals 6. The balls are well mixed so that each individual ball is as likely to be drawn as any other. There are four gambles: Gamble A: You receive $100 if you draw a red ball Gamble B: You receive $100 if you draw a blue ball Gamble C: You receive $100 if you draw a red or yellow ball Gamble D: You receive $100 if you draw a blue or yellow ball Show that if you prefer A to B but you prefer D to C, then you do not use a subjective probability in your decision.
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