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Assume Brandon's Benefit Function for Water Is and He

Question 13

Multiple Choice

Assume Brandon's benefit function for water is Assume Brandon's benefit function for water is and he consumes water both in droughts, W<sub>D</sub> and in the rainy season, W<sub>R</sub>. Assume his water bundle is W<sub>D</sub> = 36 and W<sub>R</sub> = 25 and the probability of drought is 0.75. Expected water consumption is A) 33.25 B) 61 C) 30.5 D) 27 and he consumes water both in droughts, WD and in the rainy season, WR. Assume his water bundle is WD = 36 and WR = 25 and the probability of drought is 0.75. Expected water consumption is


A) 33.25
B) 61
C) 30.5
D) 27

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