Scenario 5.6:
Consider the information in the table below, describing choices for a new doctor. The outcomes represent different macroeconomic environments, which the individual cannot predict.

-Refer to Scenario 5.6. The utility of expected income from research is:
A) U($275,000).
B) U($95,000).
C) [U($500,000) + U($50,000)]/2.
D) .1U($500,000) + .9U($50,000).
E) dependent on which outcome actually occurs.

Question

Scenario 5.6:
Consider the information in the table below, describing choices for a new doctor. The outcomes represent different macroeconomic environments, which the individual cannot predict.
 
-Refer to Scenario 5.6. The utility of expected income from research is:
A) U($275,000). 
B) U($95,000). 
C) [U($500,000) + U($50,000)]/2. 
D) .1U($500,000) + .9U($50,000). 
E) dependent on which outcome actually occurs.

Quizplus · Accepted Answer

The Answer of Scenario 5.6:
Consider the information in the table below, describing choices for a new doctor. The outcomes represent different macroeconomic environments, which the individual cannot predict.
 
-Refer to Scenario 5.6. The utility of expected income from research is:
A) U($275,000). 
B) U($95,000). 
C) [U($500,000) + U($50,000)]/2. 
D) .1U($500,000) + .9U($50,000). 
E) dependent on which outcome actually occurs.

Scenario 5.6: Consider the Information in the Table Below, Describing Choices for Choices