Upon graduation, you are offered three jobs. Which of the following is true?
A) If you're risk-neutral, you go work for Goblin Fruits.
B) If you're risk-loving, you go work for Goblin Fruits.
C) If you're risk-neutral, you go work for Samsa Exterminators.
D) If you're risk-neutral, you go work for Gradgrind Tech.

Question

Upon graduation, you are offered three jobs.  Which of the following is true?
A) If you're risk-neutral, you go work for Goblin Fruits. 
B) If you're risk-loving, you go work for Goblin Fruits. 
C) If you're risk-neutral, you go work for Samsa Exterminators. 
D) If you're risk-neutral, you go work for Gradgrind Tech.

Quizplus · Accepted Answer

If you're risk-neutral, the best choice is to choose the job that offers the highest expected value of the outcomes. Looking at the table provided, Gradgrind Tech offers the highest expected value of $65,000. Therefore, if you're risk-neutral, you should go work for Gradgrind Tech.

Upon Graduation, You Are Offered Three Jobs