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

Question 26

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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 utility of profit? A) -2,500 B) 5,000 C) 15,000 D) 30,000 E) 100,000 What is the expected utility of profit?


A) -2,500
B) 5,000
C) 15,000
D) 30,000
E) 100,000

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