Sarah, a decision maker who follows the five Rules of Actional Thought, drew the following sensitivity plot during her decision analysis. By visual inspection, you may assume that the i/-values of the end points of the curves shown below are (0,0), (1,20); (0,6), (1,14); (0,8), (1,0) for alternatives A, B, and C, respectively. Please do not assume anything else about the plot.
Let Sarah's w-curve be defined by the function u (.), and it's inverse as iT1 (.). Sarah has two degrees for distinction X (XI and X2), and her current belief is that {XI | &} = 0.75. X is the only distinction in her decision.
I. The "curves" in this plot are straight lines.
II. The alternatives in Sarah's plot of CE versus {XI | & } are three straight lines.
III. If Sarah owned alternative B, she would pay w 1 (3) to receive alternative A. How many of the following statements must be true?
a. 0 c. 2
b. 1 d. 3