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Note also, that the worth in Equation 12 is the exact same for all of the RH simulated values of mk and xk. These two simulated values are to be combined to kind a simulated worth, fk, for f̄k in Equation 11. Having said that, the easy weighted typical in Equation 11 only reflects the effect of the policy weighting, w, and ignores the truth that both mk, and xk are independent random draws from distributions, rather than fixed values….