Nick Has Two Job Offers, One as a Financial Planner

Multiple Choice

Nick has two job offers, one as a financial planner and one as an economist for a regional bank. The income that Nick would expect to earn as a financial planner depends how effective he is in getting clients. He estimates that he would receive either $80,000 and a utility of 75, with a probability of .50, or he would earn $30,000 and a utility of 35, with a probability of .50. The economist job would pay $45,000 per year and has a utility of 55. The expected income as a financial planner is ________ and as an economist is ________.

A) $60,000; $45,000
B) 55; 55
C) $80,000 and $30,000; $45,000
D) $55,000; $45,000