calculating utilities and probabilities with linear regression. Say that we are calculating utility as a function of price and that we have the following formula for utility:

Write the equation for the probability of purchase at prices of $13, $14, and $15; then calculate each probability.

We want to choose one of these prices ($13, $14, or $15) to set for our product. Which price should we set? Explain your answer. (Hint: Expected value.)