Question: An individual has the following utility function: U = I 0.5 . The person is given two choices i) receive $50 with certainty or ii)

An individual has the following utility function: U = I^0.5. The person is given two choices i) receive $50 with certainty or ii) receive $100 with a probability of 50% or receive $0 with a probability of 50%. What should the individual do?

a.Take choice i)

b.Take choice ii)

c.Not enough information provided to make decision

d.Both choices have the same expected income so person is indifferent between the choices

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