Pete's Expected Utility Function Is Pc^1/2₁ + (1 -P)c^1/2₂, Where

question 16

Multiple Choice

Pete's expected utility function is pc^1/2₁ + (1 -p) c^1/2₂, where p is the probability that he consumes c₁ and 1 - p is the probability that he consumes c₂.Pete is offered a choice between getting a sure payment of $Z or a lottery in which he receives $1,600 with probability .80 or $14,400 with probability .20.Pete will choose the sure payment if

• A)Z > 3,136 and the lottery if Z < 3,136.
• B)Z > 8,768 and the lottery if Z < 8,768.
• C)Z > 14,400 and the lottery if Z < 14,400.
• D)Z > 2,368 and the lottery if Z < 2,368.
• E)Z > 4,160 and the lottery if Z < 4,160.

---

Definitions:

Drafts Folder

The drafts folder is a designated location in email and word processing applications where unfinished documents or messages are saved for later completion.

Signature Line

A designated space in a document where an individual signs to indicate agreement or acknowledgment.

Subject Line

The part of an email or message that summarizes the content or purpose, visible before the recipient opens the message.

Communications Protocol

a set of rules and standards designed to enable communication between electronic devices.