Suppose a Decision Maker Has a Utility Function $$U = \sqrt { I }$$

Multiple Choice

Suppose a decision maker has a utility function $$U = \sqrt { I }$$ and is faced with a lottery where there is a 30% chance of earning $30 and a 70% chance of earning $80. What is the expected utility of this lottery?

A) 7.6
B) 7.9
C) 8.2
D) 8.5