Question: 1. Assume a typical individual has the following utility function: y.5 U = where y income. Assume also that this individual has y $50,

1. Assume a typical individual has the following utility function: y.5 U

1. Assume a typical individual has the following utility function: y.5 U = where y income. Assume also that this individual has y $50, 000 but faces a 15% chance of being involved in an accident that would reduce their income by $5,000. Faced with this level of uncertainty, what is this person's expected utility? 5pt

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