-James Has a Utility of Wealth Schedule in the Above

question 36

Multiple Choice

-James has a utility of wealth schedule in the above table. He is offered a job selling video games at Games Galore. James' compensation depends on how much he sells. In a poor sales period, a salesperson makes $100 per month. In a good sales period, a salesperson makes $600 per month. James is told by the manager that, in any given month, there is a 25 percent chance of a poor sales period and a 75 percent chance of a good sales period. What is James' expected income from taking this job?

• A) $100
• B) $350
• C) $475
• D) $600

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Definitions:

Playoffs

A series of games or matches to determine a championship or a team's ranking at the end of a league season.

Pillsbury Dough Boy

A fictional character and advertising mascot for the Pillsbury Company, known for his giggle when poked in the belly.

Subject

The part of a sentence or clause that denotes who or what performs the action or is described.

Proposition

In logic, a declarative statement that is either true or false, forming the basic building block of deductive reasoning.