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Kedran is indifferent between option A, which gives her $10,000 for sure, and option B, which gives her $5,000 with probability 0.4 or $15,000 with probability 0.6. Kedran's cost of risk for option B is
Morally Permissible
Actions that are considered acceptable within the confines of moral or ethical reasoning, often contextual and variable.
Categorical Imperative
A concept introduced by Immanuel Kant, referring to an unconditional moral principle that applies to all rational beings and dictates an action as necessary without regard for personal desire or consequence.
Absolute Moral Rules
Moral principles that are viewed as universally applicable and unchanging, regardless of context or circumstance.
Hypothetical
Pertaining to a supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation.
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