In Problem 9, Billy Has a Von Neumann-Morgenstern Utility Function

question 24

Multiple Choice

In Problem 9, Billy has a von Neumann-Morgenstern utility function U(c) . If Billy is not injured this season, he will receive an income of 4 million dollars. If he is injured, his income will be only 10,000 dollars. The probability that he will be injured is .1 and the probability that he will not be injured is .9. His expected utility is

• A) 100,000 dollars.
• B) 1,810 dollars.
• C) 3,620 dollars.
• D) between 3 and 4 million dollars.
• E) 7,240 dollars.

Understand the Responsibility to Protect (R2P) doctrine and its implications for national and international ethics.

Recognize the role of ethics in developing, formulating, and applying rules aligned with values.

Comprehend various ethical systems and their applications in personal and corporate decision-making.

Distinguish between ethical theories such as utilitarianism, rational ethics, and market value ethics.

---

Definitions:

PCAOB

Public Company Accounting Oversight Board, a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and the public interest.

Public Accounting Firms

Organizations licensed to provide accounting services to the public, including auditing, tax advice, and financial consulting.

Audit Report

A formal opinion or disclaimer, issued by an auditor as a result of an audit, regarding the financial statements of a company.

SEC

The Securities and Exchange Commission (SEC) is a U.S. federal agency responsible for regulating the securities industry and protecting investors.