In Kahneman and Tversky's prospect theory, they hypothesized that people tend to ______ low-probability outcomes and ______ high-probability outcomes.

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In Kahneman and Tversky's prospect theory, it is hypothesized that individuals tend to overweight low-probability outcomes (giving them more consideration than their probability justifies) and underweight high-probability outcomes (giving them less consideration than their probability justifies). This is part of their broader work on how people evaluate potential losses and gains.

In Kahneman and Tversky's Prospect Theory, They Hypothesized That People