Answer:
2 Days
Explanation:
To clarify, we need to restate the utility function for clarity
U=V^{1/2}
1. Probability of an illness occurring in the family is 20%
2. If an illness occurs, the total number of days impacted is calculated as:
Total vacation days = 10 days x Probability of illness = 20%
= 10 x 0.2 = 2 days
This indicates that should an illness occur based on this probability, 2 out of the 10 vacation days will be affected
3. The number of remaining vacation days to enjoy would thus be 10-2 = 8 days
This indicates that even after accounting for 2 days of potential illness, the family can still enjoy their vacation period.
V= 2 days