Identify a situation in your life/work previously or currently when you had a monetary decision to make where non-monetary factors may have altered your decision from what it would have been if it were strictly monetary. Describe the situation briefly, identify the decision alternatives, and identify the possible states of nature.(see chapter 5/6 of Quantitative Methods for Business 13th edition by Anderson, Sweeney, Williams, Camm). Any situation may be used, gambling, building a pool, starting up a small gift shop, etc. There must be at least two decision alternatives and at least two states of nature. Assign a probability for each state of nature.

Construct a payoff table. The values in the table must be in dollars. This needs to be a table in columns. (cannot be a line graph) If you do not know the actual values, then make your best guess. Assign a utility value of 0 to the lowest payoff. Assign a utility value to the remaining payoffs (larger payoffs must have greater utility values).

Calculate the expected value of each decision and the expected utility of each decision. Identify the optimal decision to be made for each approach. Based on these results, determine your risk profile: risk-seeking, risk-avoiding, or risk-neutral.

Thank you in advance for your help!