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Question 2(1 point) Consider a person with the following value function under prospect theory: v ( w ) = w .0.6 if w 0 =-2(-

Question 2(1 point)

Consider a person with the following value function under prospect theory:

v(w) =w.0.6ifw0

=-2(-w.)0.6ifw< 0

Assume that this individual weight values by probabilities, instead of using the prospect theory weighting function. What is the value of the following prospect?

P1 (0.5, 1000, -800)

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