2) What is expected income E(I) given IS = $1,000 and IH = $6,000 and ( 1 - p) = 80%?

2) What is expected income E(I) given IS = $1,000 and IH = $6,000 and (1 - p) = 80%?

A) $1,700

B) $5,000

C) not enough information given

D) $1,000

E) $2,000

3) In addition to the numbers given in number question 2 , 

r = 100

q = 300

what are the values of I'S ?;  I'H ? 

A) $1,000; $1,700

B) $900; $6,200

C) $1,200; $5,900

D) $5,900; $1,200

E) none of the above