You have $1,000. In addition, you face a choice between the following two gambles

You have 31,000. in addition, you face a choice between the following two gambles (9 points}. - A: 50% chance to win an extra $1,000 I B: extra $500 for sure Your value function is nix) = E for gains and 13"(x) = |x| for losses with .1. = 2. Draw your value function. What is the value of each gamble? What would you choose? Would l your decision change if instead .1 = 4. Can you think of a choice between gambles when your decision would change as your 1 changes