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(Table: Total Utility and Income for Winona) Use Table: Total

Question 155

Multiple Choice

(Table: Total Utility and Income for Winona) Use Table: Total Utility and Income for Winona. Winona's income next year is uncertain: there is a 40% probability she will earn $40,000 and a 60% probability she will earn $80,000. Winona's expected utility is _____ utils.  Table: Total Utility and Income for  Winona  Income  Total Utility (utils)  $40,00010050,00011854,00012460,00013164,00013470,00013780,000140\text { Table: Total Utility and Income for }\\{ \text { Winona } } \\\begin{array}{l}\begin{array} { | l | l | } \hline \text { Income } & \text { Total Utility (utils) } \\\hline \$ 40,000 & 100 \\\hline 50,000 & 118 \\\hline 54,000 & 124 \\\hline 60,000 & 131 \\\hline 64,000 & 134 \\\hline 70,000 & 137 \\\hline 80,000 & 140 \\\hline\end{array}\end{array}


A) 135
B) 124
C) 120
D) 130

Correct Answer:

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