Question7

For Questions 7-8, consider the following "Dutch book" scenario:

Suppose your friend offers a pair of bets:

(i) if it rains or is overcast tomorrow, you pay him $4, otherwise he pays you $6;

(ii) if it is sunny you pay him $5, otherwise he pays you $5.

• Suppose rain, overcast, and sunny are the only events in consideration. If you make both bets simultaneously, this is called a "Dutch book," as you are guaranteed to win money. How much do you win regardless of the outcome? (Report your answer without the $ symbol.)