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

question 23

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) 100,000 dollars.
• D) between 3 and 4 million dollars.
• E) 7,240 dollars.

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Definitions:

Fifth Amendment

An amendment to the U.S. Constitution that provides several protections to individuals, including rights against self-incrimination, double jeopardy, and guarantees due process of law.

Incriminating Statements

Statements that suggest or imply someone's involvement in a crime or wrong-doing.

Warrantless Search

A search conducted by law enforcement without a court-issued warrant, which must meet certain legal exceptions to be considered constitutional.

Voluntary Intoxication

A legal defense claiming that the defendant was under the influence of drugs or alcohol by their own choice at the time of the alleged crime.