Consider the Prelec function w(p) = e−1.5(− ln p) . Consider only interior fixed points (so ignore the fixed points w(0) = 0 and w(1) = 1). Let p be the probability corresponding to the point of inflexion and p∗ the fixed point. Which of the following statements is true? (A) p < p∗. (B) p > p∗. (C) p = p∗. (D) There is insufficient information to determine the relative sizes of p, p∗.

A First Course in Probability (10th Edition)
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ISBN:9780134753119
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Chapter1: Combinatorial Analysis
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Consider the Prelec function w(p) = e−1.5(− ln p) . Consider only interior fixed points (so ignore the fixed points w(0) = 0 and w(1) = 1). Let p be the probability corresponding to the point of inflexion and p∗ the fixed point. Which of the following statements is true?

(A) p < p∗.

(B) p > p∗.

(C) p = p∗.

(D) There is insufficient information to determine the relative sizes of p, p∗.

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