(Table: Natasha's Total Utility) Look at the table Natasha's Total Utility.Natasha earns $50,000
Per year but faces losing $20,000 of it if she is late with her work.If there is a 25% probability that Natasha will be late with her work and her income will then equal $30,000, her expected income is:
A)$32,500.
B)$38,200.
C)$40,500.
D)$45,000.

Question

Quizplus · Accepted Answer

The expected income is calculated by multiplying each possible income by its probability and summing the results: (0.75 * $50,000) + (0.25 * $30,000) = $45,000.

(Table: Natasha's Total Utility) Look at the Table Natasha's Total