Consider Two Gambles: Gamble A $a=\$ 100$ With Probability $p_{A}=.4$ And $\$ 0$

Essay

Consider two gambles: Gamble A: $a=\$ 100$ with probability $p_{A}=.4$ and $\$ 0$ with probability .6. Gamble B: $b=\$ 75$ with probability $p_{B}=.45$ and $\$ 0$ with probability .55 . Use the similarity algorithm to indicate whether you would choose Gamble A or Gamble B.