Suppose a decision maker has a utility function and is faced with a lottery where there is a 30% chance of earning $30 and a 70% chance of earning $80.What is the expected utility of this lottery?
A) 7.6
B) 7.9
C) 8.2
D) 8.5

Question

Suppose a decision maker has a utility function  and is faced with a lottery where there is a 30% chance of earning $30 and a 70% chance of earning $80.What is the expected utility of this lottery?
A) 7.6 
B) 7.9 
C) 8.2 
D) 8.5

Quizplus · Accepted Answer

The Answer of Suppose a decision maker has a utility function  and is faced with a lottery where there is a 30% chance of earning $30 and a 70% chance of earning $80.What is the expected utility of this lottery?
A) 7.6 
B) 7.9 
C) 8.2 
D) 8.5

Suppose a Decision Maker Has a Utility Function and Is