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

question 45

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 for $40,000 which will pay her her full salary in the event she becomes disabled. Would Isabel purchase such a policy?

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

Apply behavior modification theories to address and understand bed-wetting and other behaviors.

Compare and contrast the roles of cognitive and learning theories in human development.

Understand the significance of schemes in Piaget's cognitive-developmental theory.

Describe the process of operant conditioning and its application in daily life.

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Definitions:

After-Tax Cost of Debt

The interest rate on a company's debt after taking into consideration the tax deductibility of interest expenses.

Zero Coupon Bond

A type of bond that does not pay interest during its life but is sold at a deep discount, paying its full face value at maturity.

Tax Rate

The percentage at which an individual or corporation is taxed by the government, varying across income or profit levels.

Cost of Capital

The rate of return that a company must earn on its projects to maintain its market value and attract funds.