A decision maker follows prospect theory and faces the lottery L = 15, 1 2 ; 21, 1 3 ; 27, 1 6 . The utility function for outcomes of the decision maker is piecewise linear and given by v (x) = x if x 0 (domain of gains) 2.5 (x) if x < 0 (domain of losses) (1) The probability weighting function is w(p) = e ( ln p) 0.5 (i.e., = 1 and = 0.5). The reference point of the decision maker is r = 22. What is the certainty equivalent of the lottery L = 15, 1 2 ; 21, 1 3 ; 27, 1 6 to this decision maker? (A) 6.78 (B) 5.16 (C) 3.18 (D) 2.87