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Refer to the Data Provided in Table 17 -Refer to Table 17

Question 45

Multiple Choice

Refer to the data provided in Table 17.6 below to answer the following question(s) . The table shows the relationship between income and utility for Isabel.
Table 17.6
 Income  Total Utility $00$40,00020$80,00050$120,00090$160,000150\begin{array} { | c | c | } \hline \text { Income } & \text { Total Utility } \\\hline \$ 0 & 0 \\\hline \$ 40,000 & 20 \\\hline \$ 80,000 & 50 \\\hline \$ 120,000 & 90 \\\hline \$ 160,000 & 150 \\\hline\end{array}
-Refer to Table 17.6. Suppose Isabel has a 25% chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Isabel does not become disabled, she will earn her usual salary of $160,000. Isabel has the opportunity to purchase disability insurance for $40,000 which will pay her her full salary in the event she becomes disabled. Would Isabel purchase such a policy?


A) yes
B) no
C) maybe
D) indeterminate from the given information

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