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

question 97

Multiple Choice

Refer to the data provided in Table 17.6 below to answer the following question(s) . The table shows the relationship between income and utility for Isabel.
Table 17.6
$$\begin{array} { | c | c | } \hline \text { Income } & \text { Total Utility } \\\hline \$ 0 & 0 \\\hline \$ 40,000 & 20 \\\hline \$ 80,000 & 50 \\\hline \$ 120,000 & 90 \\\hline \$ 160,000 & 150 \\\hline\end{array}$$
-Refer to Table 17.6. Suppose Isabel has a 25% chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Isabel does not become disabled, she will earn her usual salary of $160,000. Isabel has the opportunity to purchase disability insurance which will pay her her full salary in the event she becomes disabled. Such an insurance policy be worth ________ to Isabel.

• A) $0
• B) less than $40,000 but more than $0
• C) $40,000 or more
• D) indeterminate from the given information

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Definitions:

Problem-Solving

The process of identifying issues, analyzing possible solutions, and selecting and implementing the best option to address a challenge or difficulty.

Team Cohesiveness

Describes the extent to which team members are attracted to each other and motivated to stay in the team, which generally results in higher productivity and morale.

Task Orientation

A focus on completing tasks and achieving specific outcomes, often prioritizing work and productivity.

Trait Approach

A perspective in psychology focused on the identification and measurement of specific personality traits.