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-(Table: Choice with Uncertainty)Use Table: Choice with Uncertainty.Suppose that the probability that the sitcom does not make it to television is 50%,that it makes it to television but is not the most viewed show in its time slot is 30%,and that it makes it to television and is the most viewed show in its time slot is 20%.Given this information,Norman,as a utility maximizer:
A)should keep his teaching job.
B)should quit his teaching job and go to Hollywood.
C)will be indifferent between leaving and staying because his expected income is the same whether he stays a teacher or moves to Hollywood.
D)will be indifferent between leaving and staying because his expected total utility is the same whether he stays a teacher or moves to Hollywood.

Question

Use the following to answer question: 
-(Table: Choice with Uncertainty)Use Table: Choice with Uncertainty.Suppose that the probability that the sitcom does not make it to television is 50%,that it makes it to television but is not the most viewed show in its time slot is 30%,and that it makes it to television and is the most viewed show in its time slot is 20%.Given this information,Norman,as a utility maximizer:
A)should keep his teaching job. 
B)should quit his teaching job and go to Hollywood. 
C)will be indifferent between leaving and staying because his expected income is the same whether he stays a teacher or moves to Hollywood. 
D)will be indifferent between leaving and staying because his expected total utility is the same whether he stays a teacher or moves to Hollywood.

Quizplus · Accepted Answer

DNorman should keep his teaching job because the expected utility of staying is higher than the expected utility of going to Hollywood, indicating he values the stability or other aspects of his current job more than the potential but uncertain benefits of moving to Hollywood. The indifference in choice D refers to a scenario where the expected total utility from both options is equal, considering all factors, not just income. This could happen if the non-monetary benefits of one choice compensate for lower expected monetary income, making the overall utility of both options equal for Norman.

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