Question
Steve slender offers your relative, Krystyne, an interesting gamble involving giving her the choice of the contents in one of two sealed, identical-looking boxes. One
Steve slender offers your relative, Krystyne, an interesting gamble involving giving her the choice of the contents in one of two sealed, identical-looking boxes. One box has Rs.10,000 in cash and the second has nothing inside. There is an equal probability that the chosen box contains cash versus nothing. Melanie states that she would not call off the gamble if you offered her a certain Rs.10,999 instead of her choice of box. However, she would be indifferent if Rs.15,000 was offered in place of the risky gamble; and she would definitely take Rs.15,001 to call off the gamble. What is your conclusion about the melanie.
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