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2) A firm has three investment alternatives; payoffs are in thousands of Ghana cedis. a) Using the expected value approach, which decision is preferred (3
2) A firm has three investment alternatives; payoffs are in thousands of Ghana cedis. a) Using the expected value approach, which decision is preferred (3 marks) b) For the lottery having a payoff of GHC100,000, with probability p,GHC0 with probability (1-p), two decision makers express the following indifference probabilities. Find the most preferred decision for each decision maker using the expected utility armmoneh (11 marks) c) Why don't decision maker A and B select the same decision (1 marks)
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