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The Utility from Income for Alexandra. Alexandra runs her own business, which generates an annual income of $40,000. Alexandra is considering developing a new product.
The Utility from Income for Alexandra. Alexandra runs her own business, which generates an annual income of $40,000. Alexandra is considering developing a new product. The probability that the new product will increase Alexandra's income by $30,000 is 0.5, and the probability that it will reduce Alexandra's income by $10,000 is 0.5. Alexandra's expected utility after developing her new product is _____. The Utility from Income for Alexandra Income Total Utility $0 0 $10,000 200 $20,000 360 $30,000 500 $40,000 620 $50,000 720 $60,000 800 $70,000 860 Question 10 options: 1,360 860 500 680
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