2.662549p3, use prospect theory to determine the certainty equivalent of the lottery. c Intuively explain why your

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2.662549p3, use prospect theory to determine the certainty equivalent of the lottery.

c Intuively explain why your answer in part

(b) is smaller than your answer in part (a).

d What implications does this problem have for the method used in Section 13.2 to estimate a person’s utility function?

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