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

question 13

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 for $20,000 which will pay her her full salary in the event she becomes disabled. Jane's utility per year with the policy is ________ and her expected utility without the policy is ________.

• A) 45; 40
• B) 45; 45
• C) 60; 40
• D) 20; 45

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Definitions:

Communications Board

A visual aid used by individuals who are unable to speak or write, facilitating communication through pictures, symbols, or words.

Autism Spectrum Disorder

A developmental disorder characterized by difficulties in social interaction and communication along with restricted or repetitive patterns of thought and behavior.

Group Home

A residential facility where people with disabilities or special needs live together under supervision, typically in a family-like setting.

Community

a group of people living in the same place or having a particular characteristic in common.