Question: Suppose that your value function is v (x) = sqrt(x/2) for gains and v (x) = 2sqrt(|x|) for losses. Last night you lost 9 in

Suppose that your value function is v (x) = sqrt(x/2) for gains and v (x) = 2sqrt(|x|) for losses. Last night you lost 9 in a bet. However, there was a silver lining. On your way home you found 2 lying on the ground.

(a) Plot the value function.

(b) If you integrate the loss and the gain, what is the total value?

(d) Which is better, to integrate or to segregate?

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