Suppose that Mr. Kent is planning to fly to Kansas to visit his silver-haired mother for 16days. Mr. Kent lives in New York City and will depart from LaGuardia airport. Mr.Kent's utility function for the trip is U = 2T 1/2, where T is the length of the visit in days. Due to chronic congestion and weather delays there is a 10 percent probability that the flight will be cancelled and Mr. Kent is forced to cancel his trip. The expected utility of this trip is:
A) 0.8.
B) 1.6.
C) 3.2.
D) 6.4.
E) None of the above.
Correct Answer:
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