The manager's utility function for profit is U $\pi$)= 10 ln $\pi$),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)$12,000
B)$13,000
C)$14,000
D)$15,000
E)none of the above

Question

The manager's utility function for profit is U $\pi$)= 10 ln $\pi$),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)$12,000 
B)$13,000 
C)$14,000 
D)$15,000 
E)none of the above

Quizplus · Accepted Answer

The Answer of The manager's utility function for profit is U $\pi$)= 10 ln $\pi$),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)$12,000 
B)$13,000 
C)$14,000 
D)$15,000 
E)none of the above

The Manager's Utility Function for Profit Is U π\piπ )= 10 Ln

The Manager's Utility Function for Profit Is U $\pi$ )= 10 Ln