[if they] were involuntary, delayed, uncontrollable, dreaded, or severe (certainly fatal)." (237) Likewise, people view activities they dislike as riskier than those they like even though the objective probabilities
of each occurring are the same.
Rather, one is referred to as a Bayesian if one believes that action should be based on "probability beliefs" when objective probabilities
are not known, and that one should update these beliefs according to Bayes Rule as evidence accumulates.
Identify as many financial planning questions, behaviors, concerns, problems, or goals for which objective probabilities
can be applied for the alternatives.
The numbers used to calculate subjective expected utility are the Patient's subjective probabilities; the numbers used to calculate expected moral goodness are either the Agent's subjective probabilities or objective probabilities
, both of which can deviate from the Patient's subjective probabilities.
The argument above concluded that regulators might need to deviate from standard cost-benefit practice and take account of the hedonic cost of fear, the insensitivity of fear to objective probabilities
, and the danger of mass panic.
This would cause the objective probabilities
associated with the confidence levels for the two discrimination responses to converge in the manner shown in Figure 9.
8 The difference between objective probabilities
and risk-neutral probabilities is important.
Indeed, what seems most plausible to me is that BSA-derived laws [T.sub.w] would give us objective probabilities
for certain physical event-types arising under very restricted conditions, period.
Even so, many commentators insist that the many minds view is not entitled to view these numbers as objective probabilities
(I shall take 'objective' as read from here on).
Using data from a second tier racetrack, the high correlation between subjective and objective probabilities
suggests an efficient win pool.
(1978) have all studied the ability of individuals to transform objective probabilities
to subjective probabilities.
Let there be J possible outcomes in a lottery defined over objective probabilities
. Under EUT, the probabilities for each outcome [x.sub.j], p([x.sub.j]), are those induced by the experimenter, so expected utility (EU) is simply the probability weighted utility of each outcome in each lottery i: