Suppose a Family Has Saved Enough for a 10 Day

Multiple Choice

Suppose a family has saved enough for a 10 day vacation (the only one they will be able to take for 10 years) and has a utility function U = V^1/2 (where V is the number of healthy vacation days they experience) .Suppose they are not a particularly healthy family and the probability that someone will have a vacation-ruining illness (V = 0) is 20%.What is the expected value of V?

A) 10
B) 8
C) 2
D) 0