Exam scores Assume that Alysha and Billy have the follow ing value function over exam scores: v (x) 5 x/2 for gains and v (x) 5 2x for losses. Both of them use the expected exam score as their reference point.

(a) Alysha expects to score 75 out of 100 on her upcoming midterm exam. She does better than expected. What is her gain, in terms of value, if her final score is 93?

(b) Billy also expects to score 75 out of 100 on his upcoming midterm exam.

He does worse than expected. What is his loss, in terms of value, if his final score is 67?

(c) Insofar as you use your expectation as a reference point, what does value theory seem to say about maximizing value in your life: should you per form well or poorly in exams? Should you set high or low expectations for yourself?