Multiple Choice
Billy Pigskin from your workbook has a von Neumann-Morgenstern utility function 
If Billy is not injured this season, he will receive an income of $16 million. If he is injured, his income will be only $10,000. The probability that he will be injured is .1 and the probability that he will not be injured is .9. His expected utility is
A) 3,610.
B) between 15 million and 16 million.
C) 100,000.
D) 7,220.
E) 14,440.
Correct Answer:
Verified
Correct Answer:
Verified
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