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

question 110

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. Suppose Jane has a 1/3 chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Jane does not become disabled, she will earn her usual salary of $60,000. Jane has the opportunity to purchase disability insurance which will pay her her full salary in the event she becomes disabled. On average, how much would such a contract cost the insurance company (per person) ?

• A) $20,000
• B) $30,000
• C) $40,000
• D) $60,000

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Definitions:

Vision

The ability to perceive the environment through light in the form of images interpreted by the brain via the eyes.

Blindsight

A condition where individuals can respond to visual stimuli without consciously perceiving them, typically as a result of damage to the primary visual cortex.

Visual Information

Visual information refers to data perceived through the sense of sight, involving the processing and interpretation of images by the visual system to understand one's environment.

Conscious Awareness

The state of being awake and aware of one's thoughts, feelings, sensations, and environment.