Multiple Choice
Use the following to answer question:
-(Table: Income and Utility for Tyler) Use Table: Income and Utility for Tyler.The table shows the utility Tyler receives at various income levels,but she does not know what her income will be next year.There is a 40% chance her income will be $20,000,a 40% chance her income will be $30,000,and a 20% chance her income will be $40,000.What is the maximum amount of insurance Tyler would be willing to pay to guarantee an income of $28,000?
A) $0
B) $1,484
C) $26,516
D) $126
Correct Answer:

Verified
Correct Answer:
Verified
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