Refer to the information provided in Figure 17.1 below to answer the question(s) that follow.
Refer to Figure 17.1. John has two job offers when he graduates from college. John views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $50,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $60,000. John believes that he has a 50-50 chance of earning the bonus. What is John's expected utility for each job offer?
◦ expected utility of 200 for the first offer and expected utility of 218 for the second offer
◦ expected utility of 200 for the first offer and expected utility of 110 for the second offer
◦ expected utility of 200 for the first offer and expected utility of 164 for the second offer
◦ expected utility of 100 for the first offer and expected utility of 164 for the second offer
Question continued
How to solve a linear system with three unknowns using substitution (Question 2 of 2)
How to calculate present value (Question 3)
Geese continued to follow a human around assuming their actual mothers
Answer
economic question