[109] Discussion (evaluation and thus eventual publication) of (1990c) was blocked by the CPB directorate with the comment ‘this issue exceeds the CPB intelligence’ - which was inconsistent since I worked there. The EER referee reports of (1997b) are nonsense too.
[110] Thus there is a subtle distinction between:
(A) The risk, that is single (i.e. non-plural), and gives the expected value of the valued risks
(B) The risks, that thus is plural and gives the list of the the oi that are losses. For a single outcome, we would have the difference between o and {o} (element and singleton). With a list of outcomes O = {o1, o2, ..., on} we also have lists of prices P = {P1, P2, ..., Pn}, and probabilities Pr = {p1, p2, ..., pn}, and a utility function u. (Continued next page.)
The money valued risks are X = {x1, x2, ..., xn} = O * P = { P1 o1, , ..., Pn on}.
The utility valued risks are U = { u(o1), .., u(on)}. The expression U* = u(o1, .., on ) is less appropriate since the outcomes are mutually exclusive. However, since one might consider cases where one has some utility about ‘the whole situation’, the U* might still be useful.
[111] Thus
stands for the expected value and
for the standard deviation (spread), and
