Use the following to answer question:
-(Table: Amy's Utility Function)Use Table: Amy's Utility Function.Amy is an entrepreneur with current income equal to $40,000.Amy is considering development of a new product.The probability that her new product earns Amy $30,000 in additional income is 0.5,and the probability that Amy incurs a reduction of $10,000 from her current income is also 0.5.Amy's expected utility after developing her new product is _____ utils.
A)1,360
B)860
C)500
D)680

Question

Use the following to answer question: 
-(Table: Amy's Utility Function)Use Table: Amy's Utility Function.Amy is an entrepreneur with current income equal to $40,000.Amy is considering development of a new product.The probability that her new product earns Amy $30,000 in additional income is 0.5,and the probability that Amy incurs a reduction of $10,000 from her current income is also 0.5.Amy's expected utility after developing her new product is _____ utils.
A)1,360 
B)860 
C)500 
D)680

Quizplus · Accepted Answer

The Answer of Use the following to answer question: 
-(Table: Amy's Utility Function)Use Table: Amy's Utility Function.Amy is an entrepreneur with current income equal to $40,000.Amy is considering development of a new product.The probability that her new product earns Amy $30,000 in additional income is 0.5,and the probability that Amy incurs a reduction of $10,000 from her current income is also 0.5.Amy's expected utility after developing her new product is _____ utils.
A)1,360 
B)860 
C)500 
D)680

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