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

question 39

Multiple Choice

Refer to the data provided in Table 17.1 below to answer the following question(s) . The table shows the relationship between income and utility for Jane.
Table 17.1
$$\begin{array} { | r | c | } \hline \text { Income } & \text { Total Utility } \\\hline \$ 0 & 0 \\\hline \$ 20,000 & 25 \\\hline \$ 40,000 & 45 \\\hline \$ 60,000 & 60 \\\hline \$ 80,000 & 70 \\\hline\end{array}$$
-Refer to Table 17.1. From the table, we can see that Jane is

• A) risk-averse.
• B) risk-loving.
• C) risk-neutral.
• D) We cannot determine Jane's attitude toward risk from the table.

---

Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of all the numbers by the count of numbers.

Poisson Probability Tables

Tables that provide the probabilities of different numbers of events happening in a fixed interval of time or space, assuming these events occur with a known constant rate and independently of the time since the last event.

Occurrences

Incidents or instances of something happening.

Poisson Random Variable

A type of discrete random variable that expresses the probability of a given number of events occurring in a fixed interval of time or space if these events happen with a known constant mean rate and independently of the time since the last event.