Statistics probability

Question

a nurse have to choose between OLA hospital and JUTH hospital. OLA promises a salary package of 180,000 with a likelihood of 3/4 or a loss of 60,000 due to tax deductions with a probability of 1/4. JUTH promises a salary of package of 270,000 with a likelihood of 1/2 or a loss of 75,000 with a probability of 1/2 . which of the jobs should the nurse choose so as to take care of her family with the expected salary?

Answer 1

Expected Value for OLA= (3/4)*180,000 - (1/4)*60000 =120,000

Expected Value for JUTH= (1/2)*270,000 - (1/2)*75000 = 97,500

The nurse should choose OLA, assuming she is rational and decides to maximize her salary/utility.