(Table: Amy's Utility Function) Look at the Table Choosing Insurance

Multiple Choice

(Table: Amy's Utility Function) Look at the table Choosing Insurance.Amy is an entrepreneur with current income equal to $40,000.Amy is considering development of a new product.The probability that her new product earns Amy $30,000 in additional income is 0.5, and the probability that Amy incurs a reduction of $10,000 from her current income is also 0.5.Amy's expected utility after developing her new product is utils.

A) 1360
B) 860
C) 500
D) 680