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A businessman has already lost $2000 in a business venture and is now offered an option of a sure$1000 or a 0.5 gamble to win
A businessman has already lost $2000 in a business venture and is now offered an option of a sure$1000 or a 0.5 gamble to win $2000. If he hasn't adapted to his loss, he may view it as (-2000;p= 0.5)and (-1000) instead of (2000;p= 0.5) and (1000). Graph and explain the alternate decisions that couldbe made based on the two views.
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