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2) (17 points) Jane is the owner of a food truck and you want to increase your revenue. You are deciding whether to launch a

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2) (17 points) Jane is the owner of a food truck and you want to increase your revenue. You are deciding whether to launch a new menu or stay with your old menu. The new menu could be highly successful and attract new customers. However, there is also a chance it is not very successful and you lose some long-term customers who preferred the old menu. Based on market research you expect the following: (a) (5 points) Based on expected value, should Jane launch a new menu? (b) (12 points) Suppose that Jane expects to earn 125,000 dollars in revenue and has the following prospect theory preferences: V(x)=x(0.5)ifx0V(x)=2(x)(0.5)ifx

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