Suppose that Mira has a utility function given by$.$ She is are considering two job opportunities. The first job pays a salary of $$40,000$ for sure. The second job pays a base salary of $$20,000$ but offers the possibility of a $$40,000$ bonus on top of your base salary. She believes that there is a probability of p$=0\mathrm{.}50$ that she will earn the bonus.

What is the expected salary of the second job? $[$ExpectedSalary$]$

Which offer gives Mira a higher expected utility? $[$PreferredOffer$]$

Based on this information we can conclude that Mira is $[$Risktype$].$

Question $6$ options:

$12345678910$

Risktype

$12345678910$

PreferredOffer

$12345678910$

ExpectedSalary

$1.$

$$20,000$

$2.$

$$40,000$

$3.$

$$50,000$

$4.$

$$60,000$

$5.$

The first job has a higher expected utility.

$6.$

The second job has a higher expected utility.

$7.$

Both jobs have the same expected utility.

$8.$

Risk$-$Averse

$9.$

Risk$-$Neutral

$10.$

Risk$-$Loving