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.

---

Definitions:

Central Route Persuasion

A method of persuasion that involves deeply processing the content of the message, focusing on the arguments and evidence presented.

Dispositional Attribution

The tendency to attribute someone's behavior to their inherent qualities or character, rather than external situations.

Situational

Pertaining to or dependent upon the specific circumstances, context, or environment in which an event or action occurs.

Social Prescriptions

Non-medical remedies recommended to improve health and wellbeing, often involving social, physical, or community-based activities.