15. A decision-maker is faced with a choice between a lottery with a 30% chance of a payoff of
$30 and a 70% chance of a payoff of $80, and a guaranteed payoff of $65. If the decision
maker’s utility function is U = √ I , what is the risk premium associated with this choice?
(A) $1.59
(B) $2.52
(C) $0
(D) $3.95