Editing, Segregation of Prospects

In medical decision making, a prospect can be a medical treatment that will yield different outcomes with different probabilities. When patients are offered multiple treatment options, they will have to make a decision and follow one treatment that they think is the best. This selection process includes editing and segregation of the different prospects. A prospect (x1, p1; …; xn pn) is a contract that yields outcome xi with probability pi, where p1 + p2 + … + pn = 1. To simplify this notation, we omit null outcomes and use (x, p) to denote the prospect (x, p; 0, 1 −p), which yields x with probability p and 0 with probability 1 −p. The riskless prospect that yields x with certainty is denoted by ...

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