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Q. In past few years, traffic problems for Lynn's hometown have gotten worse. Now, Commonwealth Ave is congested about half time. Normal travel time to work for Lynn is 30 minutes when Commonwealth Ave is used also re is no congestion. With congestion, elucidate however, it takes Lynn 1 hour 20 minutes to get to work. If Lynn decides to take NLEX, it will take 1 hour regardless of traffic conditions. Lynn's utility for travel time is: U (30min) = 0.9, U (1 hour) = 0.7, U (1 hour 20 min) = 0.2.
a. Which route will minimize Lynn's expected travel time?
b. Which route will maximize Lynn's utility?
c. When it comes to travel time, is Lynn a risk seeker or a risk avoider?
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