Thelma Is Indifferent Between $100 and a Bet with a 0.6

question 44

Multiple Choice

Thelma is indifferent between $100 and a bet with a 0.6 chance of no return and a 0.4 chance of $200.If U(0) = 20 and U(200) = 220,then U(100) = :

• A) 88.
• B) 94.
• C) 100.
• D) 110.
• E) 132.

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Definitions:

Fuel Mix

The combination of various fuel sources used to generate energy or power.

Two-Cycle Engine

An internal combustion engine that completes a power cycle with two strokes of the piston during only one crankshaft revolution.

Ratio

A mathematical expression that represents the relationship between two numbers, showing how many times one value contains or is contained within the other.

Equivalent Ratio

Ratios that express the same relationship between numbers, even though they may look different.