A managers utility function for profit is U(p) = 5 ln(p), where p is the dollar amount of profit. The manager is considering a risky decision, choosing between three different projects with four possible profit outcomes as shown below. The manager makes the subjective assessments shown below the table about the probability of each profit outcome:

A1 (2) Excel Wailea Visiko- Insert Page Layout Formulas Data Review View Help Foxit PDF Tell me what you want to do Shoc AutoSum A General Copy . Paste B 1 u ii- Merge & Center s-% , f: Conditional Fomat as Cell Insert Delete Format Fomatting Table Styles Sort & Find & Filter Select Clear Clipboard Font Alignment Number Cells Editing A managers utility function for profit is U(p) 5 In(p), where p is the dollar amount of profit. The manager is considering a risky decision, choosing between three different projects with four possible profit outcomes as 1 shown below. The manager makes the sublective assessments shown below the table about the probabilitv of 5 Alpha1,000 8,500 12,500 20,000 6 Brao 14,000 14,000 14,000 14,000 7 Charlie 10,000 10,000 10,000 19,500 9 Prob 0.15 0.3 10 12 a. Calculate the expected profit of Projects Alpha, Bravo and Charlie 15 b. Calculate the manager's expected utility of profit for Projects Alpha, Bravo and Charlie 18 C. If this manager is maximizing expected profit, which project will be chosen? Question1 Question 2 Ready + 100%