Question: 3. Consider a person with the following value function under prospect theory: V(W) =W0.4if w0 =-2(-w)0.4if w < 0 Assume that this individual weight values

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

V(W) =W0.4if w0

=-2(-w)0.4if w < 0

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

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