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Sam is a decision maker with Prospect Theory preferences. Suppose that for Sam, the following is true for the outcome values and probability weighing functions.
Sam is a decision maker with Prospect Theory preferences. Suppose that for Sam, the following is true for the outcome values and probability weighing functions. V(0) = 0 (0) = 0 (1) = 1 Are the following statements true, false or cannot be ascertained? Give your explanation. Points will be awarded only for answers that have supporting explanation. a. V(5) > -V(-5) b. V(-10)-V(-20) > V(0)-V(10) c. V(20)-V(0) > V(40)-V(20) d. (0.01) > 0.01 e. (0.95) > 0.95
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