Question 1 [1 point) Suppose a coin is tossed three times and each time, the result is 'tails'. A person who expects the fourth toss of the coin to be heads' is exhibiting a bias known as (O a) the law of large numbers (Obj the random walk fallacy O d the gambler's fallacy O dl inequality aversion Question 2 [1 point) A key element of Prospect Theory is that O al People are motivated by their level of wealth Obj People are motivated by changes in wealth O d People are motivated by the wealth of others O d) People are motivated by optimistic forecasts of their wealth Question 3 [1 point) The value function illustrated above suggests that O al A loss of $50 will have more impact than a gain of $5,000 Obj A loss of $50 will have more impact than a gain of $50 O d A loss of $50 will have less impact than a gain of $50 (O d) A loss of $50 will have the same impact as a gain of $50 Question 4 [1 point) A consequence of mental accounting is O al Money received in the present is heavily discounted Obj Money is treated as fungible O d Money is not treated as fungible O d) Money received in the future is heavily discounted