Billy Has a Von Neumann-Morgenstern Utility Function U(c)=c^1/2

question 6

Multiple Choice

Billy has a von Neumann-Morgenstern utility function U(c) =c^1/2.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.

---

Definitions:

Anthropology

Definition: The study of human societies, cultures, and their development.

Social Neuroscience

An interdisciplinary field that explores the neural, hormonal, cellular, and genetic mechanisms underlying the social structures, processes, and behavior of humans and animals.

Biological Psychology

A branch of psychology that explores the connections between biological processes and psychological phenomena.

Social Cognition

The process of perceiving, interpreting, and reasoning about social information and social relationships.