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Paul risks to lose his job, from which he currently earns 2000. The risk of losing his job is estimated to be 20%. Paul can

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Paul risks to lose his job, from which he currently earns 2000. The risk of losing his job is estimated to be 20%. Paul can switch to a saferjob, from which he would earn X for sure, with no risk of becoming unemployed. Paul is risk averse, and evaluates sure money according to the utility function . Which of the following values for X makes Paul indifferent between the two jobs? a. X=2000 b. X=1600 c. X=1246 d. X=1650 e. X=1296

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