The following question tests you knowledge on Decision Theory

Marg is trying to rank her job options for the summer of 2022, before her senior year of college. She reasons that her worst option would be no job at all. Her best option would be an exciting internship that pays well without being exhausting and offers her a job once she finishes her degree.

(a) Using a utility scale from 0 to 1, what is the utility of her best option in this decision problem? What is the utility of her worst option?

(b) Marg has gotten an offer for a poorly paid but interesting internship. They have said that they arent likely to have job openings soon but will write recommendations for promising interns. What method can Marg use to determine her utility for this internship? Briefly explain any formulas you use.

(c) Marg gets a second offer for a well-paying summer job that isnt really related to her future career. If Marg prefers the internship to this job, what should that tell you how the utilities of these options compare?