Scenario 5.6: Consider the Information in the Table Below, Describing Choices for Choices

Multiple Choice

Scenario 5.6:
Consider the information in the table below, describing choices for a new doctor. The outcomes represent different macroeconomic environments, which the individual cannot predict.

-Refer to Scenario 5.6. If the doctor is risk-averse, she would accept:

A) $50,000 for sure rather than take the risk of being a researcher.
B) $60,000 for sure (the minimum HMO outcome) rather than take the risk of being a researcher.
C) $95,000 for sure rather than face option 1 and option 2 in research.
D) $275,000 for sure (the average of option 1 and option 2 in research) , but not less, rather than face the risk of those two options.
E) the research position because it has the highest possible income.