Refer to the Data Provided in Table 17 -Refer to Table 17

question 10

Multiple Choice

Refer to the data provided in Table 17.3 below to answer the following question(s) . The table shows the relationship between income and utility for Terri.
Table 17.3
$$\begin{array} { | r | c | } \hline \text { Income } & \text { Total Utility } \\\hline \$ 0 & 0 \\\hline \$ 20,000 & 10 \\\hline \$ 40,000 & 25 \\\hline \$ 60,000 & 45 \\\hline \$ 80,000 & 75 \\\hline\end{array}$$
-Refer to Table 17.3. Suppose Terri has a 25% chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Terri does not become disabled, she will earn her usual salary of $80,000. Terri has the opportunity to purchase disability insurance for $20,000 which will pay her her full salary in the event she becomes disabled. Would Terri purchase such a policy?

• A) yes
• B) no
• C) maybe
• D) indeterminate from the given information

---

Definitions:

Selling Agent

An individual or entity that represents sellers in transactions, responsible for finding buyers and negotiating sales on behalf of their clients.

Greeting Cards

Greeting Cards are illustrated pieces of card stock or high-quality paper featuring expressions of friendship or other sentiments, traditionally given on special occasions or as a form of thoughtful communication.

Product Strategy

The plan a business follows to make its product successful, including decisions on design, features, pricing, and target markets.

Humanistic Psychology

The approach to personality that emphasizes aspects of psychology that are distinctly human. Closely related to the phenomenological approach and existentialism.