A family is taking a 10 day vacation, the only one possible due to busy schedules. 2 possiblilities: Someone will get sick and ruin vacation (so no vacation days) or no one will get sick and they will have 10 vacation days.
Family utility function as U= v^1/2. V is vacation days the family ends up being able to take. Chance of someone in the family getting sick over the time period is 20%. What is the expected value of V over the vacation.