If Ann's Utility Function Is U = W⁰

question 94

Multiple Choice

If Ann's utility function is U = W^0.5,and she invests in a business which can yield $6,400 with probability 1/5,and $3600 with probability 4/5,then her expected utility is

• A)80.
• B)76.
• C)64.
• D)60.

---

Definitions:

Dependent

In statistics, refers to a variable whose values are thought to rely on the effects of other variable(s), typically the outcome in an experiment or study.

Free-Throw Attempts

The number of times a player tries to score points by throwing the basketball from the free-throw line without interference from the opponents.

Score a Point

In competitive contexts, the achievement of earning a point, often contributing to a participant's or team's total score.

Independent

In statistics, a term used to describe two or more variables that are not associated with each other; each variable's distribution does not depend on the values of others.