Refer to the data provided in Table 17.4 below to answer the following question(s). The table shows the relationship between income and utility for Celeste.Table 17.4 IncomeTotal Utility $0 0 $40,00050 $80,00090$120,000120$160,000140Refer to Table 17.4. Suppose Celeste has a 1/3 chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Celeste does not become disabled, she will earn her usual salary of $120,000. Celeste has the opportunity to purchase disability insurance which will pay her her full salary in the event she becomes disabled. Such an insurance policy would be worth ________ to Celeste.
A. $0
B. $40,000 or less
C. more than $40,000 but less than $80,000
D. $80,000 or more
Answer: C
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