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MMLU-Pro / 832 / Clare manages a piano store. Her utility function is given by Utility = w - 100,…

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question

Clare manages a piano store. Her utility function is given by Utility = w - 100, where w is the total of all monetary payments to her and 100 represents the monetary equivalent of the disutility of exerting effort to run the store. Her next best alternative to managing the store gives her zero utility. The store's revenue depends on random factors, with an equal chance of being 1,000or1,000 or 400. If shareholders offered to share half of the store's revenue with her, what would her expected utility be?
Plain-text mathematical notation (without MathML)
Clare manages a piano store. Her utility function is given by Utility = w - 100, where w is the total of all monetary payments to her and 100 represents the monetary equivalent of the disutility of exerting effort to run the store. Her next best alternative to managing the store gives her zero utility. The store's revenue depends on random factors, with an equal chance of being 1,000or400. If shareholders offered to share half of the store's revenue with her, what would her expected utility be?
Original LaTeX notation
Clare manages a piano store. Her utility function is given by Utility = w - 100, where w is the total of all monetary payments to her and 100 represents the monetary equivalent of the disutility of exerting effort to run the store. Her next best alternative to managing the store gives her zero utility. The store's revenue depends on random factors, with an equal chance of being $1,000 or $400. If shareholders offered to share half of the store's revenue with her, what would her expected utility be?

category

business

options

  1. 300
  2. 225
  3. 100
  4. 450
  5. 350
  6. 250
  7. 150
  8. 200
  9. 500
  10. 400

src

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