Melanie Must Choose Between Two Jobs

Multiple Choice

Melanie must choose between two jobs. With job A, there is a 10% chance of earning $60,000 per year and a 90% chance of earning $50,000. With job B, there is a 50% chance of earning $46,000 and a 50% chance of earning $56,000. If Melanie is risk neutral (U(W) = W) , which job will she choose?

A) she is indifferent between the two jobs
B) job A
C) job B
D) her preferences violate the axioms of expected- utility theory.