Consider the Example Given on Pages 3-12 and 3-13 $k_{v}=k_{c}=0$ , That Is Both Costs and Rewards Are Immediate

Multiple Choice

Consider the example given on pages 3-12 and 3-13. Suppose $k_{v}=k_{c}=0$ , that is both costs and rewards are immediate. Let the remaining parameters be unchanged, so that $v_{t}=$ $\{8,20,0\}, c_{t}=\{0,9,1\}, \beta=\frac{1}{2}, \delta=1$ . Suppose the decision-maker is partially naïve and believes $\hat{\beta}>\beta$ . For which value of $\hat{\beta}$ does the decision-maker's choice violate the dominance property?

A) $\hat{\beta}=\frac{1}{2}$
B) $\hat{\beta}=\frac{8}{11}$
C) $\hat{\beta}=\frac{4}{11}$
D) $\hat{\beta}=1$ .