Reading 6 p. 143 and p. 148

CFA Level III
#1

Hi everyone,

  1. I experience problem with understanding the trade-off example on p.143 of Schweser notes. Especially, my concern is point 6W 4L on the curve - what happens with two extra hours the individual has available in a day?

  2. P. 148 Cancellation process for the outcomes is also not 100% clear. How come total probabilities afte cancellation do not sum to 1? What is the meaning of this outcome at all?

Thank you for the help.