Oskar's Preferences Over Gambles in Which the Probability of Events

Multiple Choice

Oskar's preferences over gambles in which the probability of events 1 and 2 are both can be represented by the von Neuman-Morgenstern utility function .5y^.5₁ + .5y^.5₂, where y₁ is his consumption if event 1 happens and y₂ is his consumption if event 2 happens. A gamble that allows him a consumption of $9 if event 1 happens and $25 if event 2 happens is exactly as good for Oskar as being sure to have an income of

A) $12.5.
B) $9.
C) $16.
D) $17.
E) None of the above.