-Marylou, Whose Utility of Wealth Curve Is Shown in the Figure

question 114

Multiple Choice

-Marylou, whose utility of wealth curve is shown in the figure above, faces two options. Option A yields $200 for sure. Option B has a 0.3 probability of yielding $100, and a 0.7 probability of yielding $300. Marylou, who is

• A) picks option A.
• B) picks option B.
• C) is indifferent between option A and option B.
• D) needs more information to make a choice.

---

Definitions:

Internal Beliefs

Personal convictions or acceptances that something is true or exists, often guiding behavior and thought processes.

Group

A collective of individuals who interact with one another, share similar characteristics, and collectively experience a feeling of unity or identity.

Environment

The sum total of all external conditions and influences that affect the life, nature, behavior, and growth of an organism or organization.

Extraverted

Refers to an outgoing, socially confident personality type characterized by high levels of enthusiasm, energy, and a tendency to seek stimulation in the company of others.