Figure 5.3 -The Individual Pictured in Figure 5.3

question 25

Multiple Choice

Figure 5.3
-The individual pictured in Figure 5.3

• A) prefers a sure $6000 to a 50% chance of $4000 and a 50% chance of $8000.
• B) has an expected utility of 12 from a 50% chance of $4000 and a 50% chance of $8000.
• C) would receive a utility of 12 from a sure $6000.
• D) would receive a utility of 18 from a sure $6000.