Ken Jennings Has Just Been Offered a Job with a Start-Up

Multiple Choice

Ken Jennings has just been offered a job with a start-up company. The job pays $30,000 guaranteed per year. On top of that that there is a ½ probability that he can get a $50000 performance bonus making a total of $80,000. Ken, operates under the assumptions of expected utility theory and in general, has a strong preference for a job that pays a fixed amount per year. Ken's utility of wealth function is given by U(W) = $\surd$ W. (U(W) is equal to the Square Root of W) . Based on this information, you would conclude that:

A) Ken will be willing to accept any job that pays approximately $52,000 per year or higher.
B) Ken will be willing to accept any job that pays approximately $30,000 per year or higher.
C) Ken will be willing to accept a job that pays $50,000 per year.
D) Ken will be willing to accept a job that provides him with 200 utils of utility or less.