In the trade-off method for assessing utilities, consider the dollar amount X1 that makes you indifferent between

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In the trade-off method for assessing utilities, consider the dollar amount X1 that makes you indifferent between gambles A1 and A2, and X2 that makes you indifferent between gambles B1 and B2. Show that U(X2) = 2U(X1).
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Making Hard Decisions with decision tools

ISBN: 978-0538797573

3rd edition

Authors: Robert Clemen, Terence Reilly

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