6. basics of linear model Return yet again to Example 15.1. (a) Suppose the manager supplies input...

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6. basics of linear model Return yet again to Example 15.1.

(a) Suppose the manager supplies input H but allocates half of that input to each task. Determine his certainty equivalent

(b) Now suppose the manager supplies input L. What is his preferred allocation of this input among the two tasks? What is the resulting certainty equivalent?

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