Suppose Brandon's indifference curves are defined as U = (3/4)√F_S + (1/4)√F_H,where F_S is consumption during sunny weather and F_H is consumption during a hurricane.Further suppose Brandon receives 64 units of food when it is sunny and 16 units when there is a hurricane.If the probability of sunshine is Π = 0.75,expected food consumption is: A) 28. B) 40. C) 52. D) 80.

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Quizplus · Accepted Answer

Expected food consumption is calculated as the weighted average of food consumption in different states, using the probabilities as weights: (0.75 * 64) + (0.25 * 16) = 52.

Suppose Brandon's Indifference Curves Are Defined as U = (3/4)√FS

Suppose Brandon's Indifference Curves Are Defined as U = (3/4)√F_S