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-Jennifer Has the Utility of Wealth Curve Shown in the Figure

Question 5

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-Jennifer has the utility of wealth curve shown in the figure above. She owns a car worth $15,000, and that is her only wealth. There is a 10 percent chance that Jennifer will have an accident within a year. If she does have an accident, her car is worthless. What is Jennifer's expected utility? A) 60 B) 90 C) 98 D) 50
-Jennifer has the utility of wealth curve shown in the figure above. She owns a car worth $15,000, and that is her only wealth. There is a 10 percent chance that Jennifer will have an accident within a year. If she does have an accident, her car is worthless. What is Jennifer's expected utility?


A) 60
B) 90
C) 98
D) 50

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