This sort of dilemma depends on context. Some may have been cheated in the past, so certainty is valuable to them. Others may need exactly $24,000, and others may need exactly $27,000 for a larger (higher utility) purpose. Others may have different risk tolerance.
You may argue that, given only this decision and no outside influences, a person would be irrational to choose a particular way. Unfortunately, you will never find a reasoning being without context.
This is exactly the Bayesian way. Previous experience defines what is currently rati... (read more)
Context is king.
This sort of dilemma depends on context. Some may have been cheated in the past, so certainty is valuable to them. Others may need exactly $24,000, and others may need exactly $27,000 for a larger (higher utility) purpose. Others may have different risk tolerance.
You may argue that, given only this decision and no outside influences, a person would be irrational to choose a particular way. Unfortunately, you will never find a reasoning being without context.
This is exactly the Bayesian way. Previous experience defines what is currently rati... (read more)