Melanie must choose between two jobs. With job A, there is a 10% chance of earning $60,000 per year and a 90% chance of earning $50,000. With job B, there is a 50% chance of earning $46,000 and a 50% chance of earning $56,000. If Melanie is risk neutral (U(W)= W), which job will she choose?
A)she is indifferent between the two jobs
B)job A
C)job B
D)her preferences violate the axioms of expected- utility theory.

Question

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The Answer of Melanie must choose between two jobs. With job A, there is a 10% chance of earning $60,000 per year and a 90% chance of earning $50,000. With job B, there is a 50% chance of earning $46,000 and a 50% chance of earning $56,000. If Melanie is risk neutral (U(W)= W), which job will she choose?
A)she is indifferent between the two jobs
B)job A
C)job B
D)her preferences violate the axioms of expected- utility theory.

Melanie Must Choose Between Two Jobs