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A firm has three investment alternatives (d1,d2,d3). Payoffs are in thousands of dollars: Decision Alternative (1) - Investment A, d1 Up, s1 - 100 Stable,

A firm has three investment alternatives (d1,d2,d3). Payoffs are in thousands of dollars:

Decision Alternative (1) - Investment A, d1

Up, s1 - 100

Stable, s2 - 25

Down, s3 - 0

Decision Alternative (2) - Investment B, d2

Up, s1 - 75

Stable, s2 - 50

Down, s3 - 25

Decision Alternative (3) - Investment C, d3

Up, s1 - 50

Stable, s2 - 50

Down, s3 - 50

Probabilities

Up, s1 - 0.40

Stable, s2 - 0.30

Down, s3 - 0.30

What is the utility of a payoff of 50 for decision maker B? U(100) = 10 and U(0) = 0.

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