Use the following to answer questions:
-(Table: Income and Utility for Rahim) Look at the table Income and Utility for Rahim. Rahim's expected utility from income is:
A) 3,500 utils.
B) 10,000 utils.
C) 3,104 utils.
D) Utility cannot be determined from the information given.

Question

Use the following to answer questions: 
-(Table: Income and Utility for Rahim) Look at the table Income and Utility for Rahim. Rahim's expected utility from income is:
A) 3,500 utils. 
B) 10,000 utils. 
C) 3,104 utils. 
D) Utility cannot be determined from the information given.

Quizplus · Accepted Answer

Expected utility = (0.5 * 3,000) + (0.5 * 4,208) = 3,104 utils

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