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Consider a scenario where an individual faces a choice between a good life choice and an ungood life choice. Both option result in a risky

Consider a scenario where an individual faces a choice between a “good” life choice and an “ungood” life choice. Both option result in a risky health situation, although the risk is conditional on the choice made. There is also a guaranteed positive benefit ($U) from making the ungood life choice. The tables below depict odds and costs associated with each choice:

Good:

Probability

Cost

Healthy

0.99

0

Sick

0.01

-1000

Ungood:

Probability

Cost

Healthy

0.8

0

Sick

0.2

-1000

Given these situations, how much must you value the guaranteed positive benefit ($U) to rationally choose the Ungood choice?

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