=3-45 Jim Sellers has been able to estimate his utility for a number of different values. He

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=3-45 Jim Sellers has been able to estimate his utility for a number of different values. He would like to use these utility values in making the decision in Problem 3-44: U(−$80,000) = 0, U(−$65,000) = 0.5, U(−$60,000) = 0.55, U(−$20,000) = 0.7, U(−$5,000) = 0.8, U($0) = 0.81, U ($80,000) =

0.9, U ($95,000) = 0.95, and U ($100,000) = 1. Resolve Problem 3-44 using utility values. Is Jim a risk avoider?

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Quantitative Analysis For Management

ISBN: 9789332578692

12th Edition

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna

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