Microeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 8

You have a big exam tomorrow. You were planning to study tonight, but your friend has tickets to a concert and has invited you to join her. You would be willing to accept a B on the exam in order to go to the concert. You estimate that if you don't study you have a 35 percent chance of scoring a 90, a 35 percent chance of scoring an 80 (the score required to earn a B), a 25 percent chance of earning a 75, and a 5 percent chance of earning a 60. Will you go to the concert? Explain why or why not.