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The Manager's Utility Function for Profit Is U π\pi )= 50 π\pi

Question 17

Multiple Choice

The manager's utility function for profit is U π\pi ) = 50 π\pi ,where π\pi is the dollar amount of profit.The manager is considering a risky decision with the four possible profit outcomes shown below.The manager makes the following subjective assessments about the probability of each profit outcome:  The manager's utility function for profit is U  \pi ) = 50  \pi ,where   \pi  is the dollar amount of profit.The manager is considering a risky decision with the four possible profit outcomes shown below.The manager makes the following subjective assessments about the probability of each profit outcome:   What is the expected profit? A) $2,000 B) $3,000 C) $4,000 D) $5,000 E) none of the above What is the expected profit?


A) $2,000
B) $3,000
C) $4,000
D) $5,000
E) none of the above

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