1. 

   jensen Member

   In the part two solution, the gambles are:
   
   a ; p
   +1 ; 0.49
   -1m ; 0.51
   
   b ; p
   +1m ; 0.5
   -2 ; 0.5
   
   If L=0, using shortfall probs, shouldn't the gambler prefer game b than game a since P(a<0) > P(b<0) ?

    

   jensen, Feb 24, 2008

   #1
2. 

   Mike Lewry Member

   Good spot - yes, the 0.49 and 0.51 are back to front. I'll add this to our corrections document.

    

   Mike Lewry, Mar 14, 2008

   #2

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