Question: If David is indifferent between the following two bets about the outcome of a two-party election race: Bet 1: Lose $100 if the Democratic wins;

  1. If David is indifferent between the following two bets about the outcome of a two-party election race:

Bet 1: Lose $100 if the Democratic wins;

Gain $200 if the Republican wins.

Bet 2: Gain $100 if the Democratic wins;

Lose $200 if the Republican wins.

then David believes the probability that the Democratic will win is:

A. 1/2 B. 1/3 C. 2/3 D. ________

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