I think you meant Standard Normal. Normal is just the nature of the shape. It doesn't lock/define the area under the tails (kurtosis). Both blue and orange above visually look very much like a Normal curve.
Also, I totally disagree that in the example with the window washer, the washer values their life at 5 million. Very unlikely. If they do, this means that they are completely risk-neutral, i.e. they absolutely do not give a damn about risk. Like a utilitarian robot, they are simply asking for non-risk adjusted compensation due to expected loss of life. This is very different than asking for $1000, because the window washer is risk-averse, or $100 if the window washer is a risk-lover.
I think you meant Standard Normal. Normal is just the nature of the shape. It doesn't lock/define the area under the tails (kurtosis). Both blue and orange above visually look very much like a Normal curve.
Also, I totally disagree that in the example with the window washer, the washer values their life at 5 million. Very unlikely. If they do, this means that they are completely risk-neutral, i.e. they absolutely do not give a damn about risk. Like a utilitarian robot, they are simply asking for non-risk adjusted compensation due to expected loss of life. This is very different than asking for $1000, because the window washer is risk-averse, or $100 if the window washer is a risk-lover.