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Consider the Following Risky Prospect The Expected Utility Is Equal To:
A) $30,000

Question 20

Multiple Choice

Consider the following risky prospect:  MONEY  UTLITY  PROBABILTTY $20,000100.2$30,000180.2$40,000240.6\begin{array} { | c | c | c | } \hline \text { MONEY } & \text { UTLITY } & \text { PROBABILTTY } \\\hline \$ 20,000 & 10 & 0.2 \\\hline \$ 30,000 & 18 & 0.2 \\\hline \$ 40,000 & 24 & 0.6 \\\hline\end{array} The expected utility is equal to:


A) $30,000.
B) 18.
C) 20.
D) 24.
E) $34,000.

Correct Answer:

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