Multiple Choice
Obi-Wan is considering whether to buy a lightsaber. With probability 0.50 he will value the lightsaber at $4,000, and with probability 0.50 he will value it at $1,000. If Obi-Wan is risk averse, then he will be willing to pay ________ for a new lightsaber.
A) more than $4,000
B) more than $2,500
C) less than $4,000
D) less than $2,500
Correct Answer:
Verified
Correct Answer:
Verified
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