Pete's Expected Utility Function Is Pc^1/2₁ + (1 -P)c^1/2₂, Where

Multiple Choice

Pete's expected utility function is pc^1/2₁ + (1 -p) c^1/2₂, where p is the probability that he consumes c₁ and 1 - p is the probability that he consumes c₂.Pete is offered a choice between getting a sure payment of $Z or a lottery in which he receives $1,600 with probability .80 or $14,400 with probability .20.Pete will choose the sure payment if

A) Z > 3,136 and the lottery if Z < 3,136.
B) Z > 8,768 and the lottery if Z < 8,768.
C) Z > 14,400 and the lottery if Z < 14,400.
D) Z > 2,368 and the lottery if Z < 2,368.
E) Z > 4,160 and the lottery if Z < 4,160.