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-Bobby Is Offered a Job as a Salesperson in Which

Question 200

Multiple Choice

-Bobby is offered a job as a salesperson in which there is a 50 percent chance that he will make $2,000 and a 50 percent chance that he will make $10,000. Bobby's utility of wealth curve is shown in the figure above. What is Bobby's expected income from taking this job? A) $4,000 B) $6,000 C) $2,000 D) $10,000
-Bobby is offered a job as a salesperson in which there is a 50 percent chance that he will make $2,000 and a 50 percent chance that he will make $10,000. Bobby's utility of wealth curve is shown in the figure above. What is Bobby's expected income from taking this job?


A) $4,000
B) $6,000
C) $2,000
D) $10,000

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