(Table: Income and Utility for Tyler) the Table Income and Utility

Multiple Choice

(Table: Income and Utility for Tyler) The table Income and Utility for Tyler 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.We know that Tyler is risk-averse because:

A) Tyler would prefer $40,000 but there is a risk she will make only $20,000.
B) Tyler's expected income is less than what she may actually earn.
C) Tyler's expected income is more than what she may actually earn.
D) Tyler experiences diminishing marginal utility from income.