Sherry has two choices. She can either receive $\$ 8$ or a lottery ticket that pays $\$ 40$ with a $50 \%$ chance and $\$ 10$ with a $50 \%$ chance. Sherry rejects the lottery ticket unless her preferences are given by which of the following?
A) $U(x)=2 \exp ^{-.01 x}$
B) $\quad U(x)=\ln (x)$
C) $U(x)=\sqrt{x}$
D) $U(x)=\frac{x^{\frac{1}{4}}}{\frac{1}{4}}$

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The Answer of Sherry has two choices. She can either receive $\$ 8$ or a lottery ticket that pays $\$ 40$ with a $50 \%$ chance and $\$ 10$ with a $50 \%$ chance. Sherry rejects the lottery ticket unless her preferences are given by which of the following?
A) $U(x)=2 \exp ^{-.01 x}$
B) $\quad U(x)=\ln (x)$
C) $U(x)=\sqrt{x}$
D) $U(x)=\frac{x^{\frac{1}{4}}}{\frac{1}{4}}$

Sherry Has Two Choices $8\$ 8$8 Or a Lottery Ticket That Pays

Sherry Has Two Choices $\$ 8$ Or a Lottery Ticket That Pays