Figure 5.2.3
-The individual pictured in Figure 5.2.3:
A) prefers a sure $6000 to a 50% chance of $4000 and a 50% chance of $8000.
B) has an expected utility of 12 from a 50% chance of $4000 and a 50% chance of $8000.
C) would receive a utility of 12 from a sure $6000.
D) would receive a utility of 18 from a sure $6000.

Question

Figure 5.2.3
-The individual pictured in Figure 5.2.3:
A) prefers a sure $6000 to a 50% chance of $4000 and a 50% chance of $8000. 
B) has an expected utility of 12 from a 50% chance of $4000 and a 50% chance of $8000. 
C) would receive a utility of 12 from a sure $6000. 
D) would receive a utility of 18 from a sure $6000.

Quizplus · Accepted Answer

The Answer of  Figure 5.2.3
-The individual pictured in Figure 5.2.3:
A) prefers a sure $6000 to a 50% chance of $4000 and a 50% chance of $8000. 
B) has an expected utility of 12 from a 50% chance of $4000 and a 50% chance of $8000. 
C) would receive a utility of 12 from a sure $6000. 
D) would receive a utility of 18 from a sure $6000.

Figure 5.2.3 -The Individual Pictured in Figure 5.2.3