-The above figure shows how an individual evaluates a bet in which he or she has a 0.5 probability of receiving $20 and a 0.5 probability of receiving $200. The individual would be indifferent between
A) $110 with certainty or the expected value of the bet.
B) $80 with certainty or the expected value of the bet.
C) $200 with certainty or the expected value of the bet.
D) $20 with certainty or the expected value of the bet.

Question

-The above figure shows how an individual evaluates a bet in which he or she has a 0.5 probability of receiving $20 and a 0.5 probability of receiving $200. The individual would be indifferent between
A) $110 with certainty or the expected value of the bet. 
B) $80 with certainty or the expected value of the bet. 
C) $200 with certainty or the expected value of the bet. 
D) $20 with certainty or the expected value of the bet.

Quizplus · Accepted Answer

The Answer of 
-The above figure shows how an individual evaluates a bet in which he or she has a 0.5 probability of receiving $20 and a 0.5 probability of receiving $200. The individual would be indifferent between
A) $110 with certainty or the expected value of the bet. 
B) $80 with certainty or the expected value of the bet. 
C) $200 with certainty or the expected value of the bet. 
D) $20 with certainty or the expected value of the bet.

-The Above Figure Shows How an Individual Evaluates a Bet