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

question 10

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

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Definitions:

EEG

Abbreviation for electroencephalogram, a test that measures electrical activity of the brain through small, flat metal discs attached to the scalp.

Awake Adults

Referencing the state of alertness and consciousness in adult individuals during periods they are not sleeping.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, enclosed in the spinal canal.

Filum Terminale

A fibrous tissue extension of the conus medullaris of the spinal cord, anchoring it within the vertebral canal.