Super Cola is considering the introduction of a new eight-oz.root beer.The probability that the root beer will be a success is believed to equal 0.6.The payoff table is as follows:

Company management has determined the following utility values:

a.Is the company a risk taker,risk averse,or risk neutral?
b.What is Super Cola's optimal decision?

Question

Super Cola is considering the introduction of a new eight-oz.root beer.The probability that the root beer will be a success is believed to equal 0.6.The payoff table is as follows:
​  ​
Company management has determined the following utility values:
​  ​ 
a.Is the company a risk taker,risk averse,or risk neutral?
b.What is Super Cola's optimal decision?
​

Quizplus · Accepted Answer

The Answer of Super Cola is considering the introduction of a new eight-oz.root beer.The probability that the root beer will be a success is believed to equal 0.6.The payoff table is as follows:
​  ​
Company management has determined the following utility values:
​  ​ 
a.Is the company a risk taker,risk averse,or risk neutral?
b.What is Super Cola's optimal decision?
​

Super Cola Is Considering the Introduction of a New Eight-Oz