Quantitative Analysis for Management

1. In Problem 3-35, you helped the medical profession- als analyze their decision using expected monetary

value as the decision criterion. This group has also assessed their utility for money: U1-$45,0002 = 0, U1-$40,0002 = 0.1,U1-$5,0002 = 0.7,U($02= 0.9, U1$95,0002 = 0.99, and U1$100,0002 = 1. Use expected utility as the decision criterion, and de- termine the best decision for the medical profession- als. Are the medical professionals risk seekers or risk avoiders?

Adjust 3-35 problem references

Quantitative Analysis for Management