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Suppose that Tommy has initial wealth $25,000, and that he evaluates gambles according to prospect theory with (p) =p and v(x) = Ax if x

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Suppose that Tommy has initial wealth $25,000, and that he evaluates gambles according to prospect theory with (p) =p and v(x) = Ax if x 2 0 if x 24, what can we conclude about Tommy's A? (b) Suppose that Tommy has the A that you found in part (a), and derive how he feels about the following bets: (i) Tommy will accept (-100, 5; X, ;) if and only if X >???? (ii) Tommy will accept (-500, 5; X, -) if and only if X >???? (iii) Tommy will accept (-1000, 5; X, ;) if and only if X >

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