The individual pictured in Figure 5.3
A. prefers a sure $6000 to a 50% chance of $4000 and a 50% chance of $8000.
B. has an expected utility of 12 from a 50% chance of $4000 and a 50% chance of $8000.
C. would receive a utility of 12 from a sure $6000.
D. would receive a utility of 18 from a sure $6000.
Answer:C
The individual pictured in Figure 5.3
A. prefers a sure $6000 to a 50% chance of $4000 and a 50% chance of $8000. B. has an expected utility of 12 from a 50% chance of $4000 and a 50% chance of $8000. C. would receive a utility of 12 from a sure $6000. D. would receive a utility of 18 from a sure $6000.