07. (10 points) Short answer questions 07.1) (2 points) Is the following statement true or false? Probability weighting function assumes that people act as if probabilities are distorted. People overweight small probabilities and underweight large probabilities. 07.2) (2 points} Is the following statement true or false? Consumer discrimination is not dangerous in Becker's model because it gets eliminated by market forces over time. 07.3) (2 points) Fill in the blank. Loss aversion is a well- established phenomenon. However, what is considered as a loss depends upon the Q7 4) (2 points) Give two examples of prospect theory (Iisk seeking behavior when losing, but risk averse behavior when gaining) in sports. 07.5) (2 points) Draw a risk averse utility function (label the axes)