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UWS applied to the decision between a gamble with a 90% chance of losing $1 and a 10% chance of winning $99 versus a sure gain of $1.
| Simulated Outcomes | Utilities | Count | Decision | Frequency |
|---|---|---|---|---|
| (01,01) | (−0.02, −0.02) | −2 | decline gamble | 0.1552 · 0.1552 = 2.41% |
| (o1,o2) | (−0.02, +0.98) | 0 | accept with prob. 0.5 | 0.1552 · 0.8448 = 13.11% |
| (o2, o1) | (+0.98, −0.02) | 0 | accept with prob. 0.5 | 0.8448 · 0.1552 = 13.11% |
| (o2,o2) | (+0.98, +0.98) | +2 | accept gamble | 0.8448 · 0.8448 = 71.37% |
|
| ||||
| P(choose gamble) | 84.48% | |||
