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

v$($z$)=20\mathrm{.}7$

v $($z$)=-2(-2)0\mathrm{.}7$

This individual has the following weighting function:

when w $>0$ when w $<$ o

pir

$1($pi$)=$

$($pir $+(1-$ pi$)$Y$)$Y

Where we set y $=\mathrm{.}65.$

Which of the following prospects would he choose? Consider that he would choose using probabilities instead of weights.

P$1(0\mathrm{.}003,1000,-200)$

P$2(0\mathrm{.}2,500,-100)$

P$3(0\mathrm{.}7,-20)$

O A$.$ Prospect $1.$

O B$.$ Prospect $2.$

$$ C$.$ Prospect $3.$

O D$.$ There is no difference.