Use the Following to Answer Question

question 72

Multiple Choice

Use the following to answer question:
-(Table: Amy's Utility Function) Use Table: Amy's Utility Function.Amy is an entrepreneur with income of $40,000.Amy is considering development of a new product.The probability that her new product earns Amy $30,000 in additional income is 0.5,and the probability that Amy incurs a reduction of $10,000 from her current income is 0.5.Amy's expected income after developing her new product is:

• A)$45,000.
• B)$35,000.
• C)$50,000.
• D)$60,000.

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Definitions:

Attitudinal

Pertaining to attitudes, which are psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Schachter and Singer

Two psychologists known for their 1962 experiment and theory suggesting that emotions are determined by physiological arousal and cognitive labels.

General Feeling

A broad emotional state or mood that is not focused on any specific object or situation.

Strong Coffee

Coffee with a high concentration of caffeine and bold flavors, often resulting from the type of bean, roast, or brewing method.