Buck Columbus Is Thinking of Starting a Pinball Palace near a Large

question 13

Multiple Choice

Buck Columbus is thinking of starting a pinball palace near a large Midwestern university. Buck is an expected utility maximizer with a von Neuman-Morgenstern utility function, U(W) = 1 - ( ) , where W is his wealth. Buck's total wealth is $24,000. With probability .2 the palace will be a failure and he'll lose $18,000, so that his wealth will be just $6,000. With probability .8 it will succeed and his wealth will grow to $x. What is the smallest value of x that would be sufficient to make Buck want to invest in the pinball palace rather than have a wealth of $24,000 with certainty?

• A) $28,500
• B) $150,000
• C) $96,000
• D) $72,000
• E) $30,000

---

Definitions:

Extracellular Antigens

Foreign substances outside cells that trigger an immune response.

B Cells

A type of white blood cell that plays a key role in the immune response by producing antibodies against antigens.

Antibody-Mediated Immunity

Immunity due to B cells and the production of antibodies.

Cell-Mediated Immunity

Immunity due to the actions of T cells and null cells.