1. **State the problem:** Mr. White has $50,000 and can invest it with a 70% chance to grow to $70,000 and a 30% chance to shrink to $20,000. We want to find his expected utility given his utility function $U(W) = \ln W$. 2. **Formula for expected utility:** Expected utility $E[U] = p_1 U(W_1) + p_2 U(W_2)$ where $p_i$ are probabilities and $W_i$ are wealth outcomes. 3. **Apply the values:** - $p_1 = 0.7$, $W_1 = 70000$ - $p_2 = 0.3$, $W_2 = 20000$ 4. **Calculate utilities:** $$U(70000) = \ln 70000$$ $$U(20000) = \ln 20000$$ 5. **Calculate expected utility:** $$E[U] = 0.7 \times \ln 70000 + 0.3 \times \ln 20000$$ 6. **Evaluate logarithms (using natural log):** $$\ln 70000 \approx 11.1563$$ $$\ln 20000 \approx 9.9035$$ 7. **Calculate final expected utility:** $$E[U] = 0.7 \times 11.1563 + 0.3 \times 9.9035 = 7.8094 + 2.9710 = 10.7804$$ **Final answer:** Mr. White's expected utility from the investment opportunity is approximately $10.78$.