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-Beachcomber Beatrice Spent Her Entire Wealth of $100,000 to Build

Question 91

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-Beachcomber Beatrice spent her entire wealth of $100,000 to build a beach house on the Gulf of Mexico. There is a 10 percent chance that the house will be totally destroyed by a hurricane. Beatrice's utility of wealth schedule is given in the table above. What is Beatrice's expected utility of wealth? A) between 0 and 200 B) 245 C) 270 D) between 287 and 300
-Beachcomber Beatrice spent her entire wealth of $100,000 to build a beach house on the Gulf of Mexico. There is a 10 percent chance that the house will be totally destroyed by a hurricane. Beatrice's utility of wealth schedule is given in the table above. What is Beatrice's expected utility of wealth?


A) between 0 and 200
B) 245
C) 270
D) between 287 and 300

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