Assume you are the owner of TheBlues Inc., an international manufacturer of electronic products, and you are contemplating introducing a new type of Blue Ray player. After considering the potential market share for the product, your accountant estimated that after the first year of the new product on the market, TheBlues inc. may have a financial result ranging from a loss of AUD 280,000 to a profit of AUD 800,000. To take a decision in this situation, you need to assess your utility function over the expected financial outcomes.

you need to assess one of the quantiles of your utility function, chosen depending on the last digit of your UTAS student ID number, as per the following table:

Last digit of student ID

0

1

2

3

4

5

6

7

8

9

Quantile index

0.05

0.15

0.25

0.35

0.45

0.55

0.65

0.75

0.85

0.95

Define the level of the error, , that corresponds to the range of the attribute (the financial result) and the expectations of the elicitation process.