Use the Following to Answer Question

question 191

Multiple Choice

Use the following to answer question:
-(Table: Natasha's Total Utility) Use Table: Natasha's Total Utility.Natasha earns $50,000 per year but faces losing $20,000 of it if she is late with her work.If there is a 25% probability that Natasha will be late with her work and her income will equal $30,000,the premium for a fair insurance policy to eliminate the uncertainty in her income would equal:

• A)$4,000.
• B)$5,000.
• C)$7,500.
• D)$9,500.

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Definitions:

Effectively

In a manner that produces the intended result or a successful outcome.

False Assumption

An incorrect belief or premise that may lead to erroneous conclusions or actions.

Same Characteristics

Qualities, attributes, or features that are identical or very similar between entities.

Wealth Inequity

The unequal distribution of assets, wealth, and income among individuals or groups within a society, leading to economic disparity.