Billy Pigskin from your workbook has a von Neumann-Morgenstern utility function U(c)= c^1/2.If Billy is not injured this season, he will receive an income of $16 million.If he is injured, his income will be only $10,000.The probability that he will be injured is .1 and the probability that he will not be injured is .9.His expected utility is A)3,610. B)between 15 million and 16 million. C)100,000. D)7,220. E)14,440.

Question

Quizplus · Accepted Answer

The Answer of Billy Pigskin from your workbook has a von Neumann-Morgenstern utility function U(c)= c^1/2.If Billy is not injured this season, he will receive an income of $16 million.If he is injured, his income will be only $10,000.The probability that he will be injured is .1 and the probability that he will not be injured is .9.His expected utility is A)3,610. B)between 15 million and 16 million. C)100,000. D)7,220. E)14,440.

Billy Pigskin from Your Workbook Has a Von Neumann-Morgenstern Utility