A managers utility function for profit is U() = 20, where is the dollar amount of

A manager’s utility function for profit is U(π) = 20π, where π is the dollar amount of profit. The manager is considering a risky decision with the four possible profit outcomes shown here. The manager makes the following subjective assessments about the probability of each profit outcome:

Probability                 Profit
                                  outcome
0.05 .......................-$10,000
0.45  .........................-2,000
0.45  ..........................4,000
0.05  ........................20,000

a. Calculate the expected profit.
b. Calculate the expected utility of profit.
c. The marginal utility of an extra dollar of profit is _________.
d. The manager is risk_________ because the marginal utility of profit is _________.