Question: Solve the problem. At age 50, Ann must choose between taking $21,000 at age 60 if she is alive then, or $31,000 at age 70

Solve the problem.

At age 50, Ann must choose between taking $21,000 at age 60 if she is alive then, or $31,000 at age 70 if she is alive then. The probability for a person aged 50 living to be 60 and 70 is 0.81 and 0.61, respectively. Using expected value, what is Ann's best option?

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