Using the Following:
the Manager's Utility Function for Profit Is $\pi$

question 52

Multiple Choice

Using the following:
The manager's utility function for profit is U $\pi$ = 10 ln $\pi$ , where $\pi$ is the dollar amount of profit. The manager is considering a risky decision with the four possible profit outcomes shown below. The manager makes the following subjective assessments about the probability of each profit outcome:
$$\begin{array} { c c } \text { Prabability } & \text { Profit outcome (\$) } \\\hline 0.05 & \$ 5,000 \\0.10 & \$ 10,000 \\0.35 & \$ 15,000 \\0.50 & \$ 20,000\end{array}$$
-Given this utility function for profit, the utility of profit is

• A) equal to 198 for $20,000.
• B) increasing as profit gets larger, so the manager is risk-loving.
• C) decreasing as profit gets larger, so the manager is risk-averse.
• D) both a and b
• E) both a and c

Differentiate between key healthcare programs and their target populations.

Identify factors contributing to the rise of alternative healthcare facilities.

Understand the influence of business on healthcare and its outcomes.

Explain the characteristics and implications of the American healthcare model, including expenditure patterns.

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Definitions:

Debit Memorandum

A document issued by a buyer to a seller indicating a debit or adjustment to an account, typically related to goods returned or a pricing dispute.

Sales Returns and Allowances

A reduction in sales revenue due to returns or allowances for unsatisfactory goods, reported as a contra-revenue account.

Debit Memorandum

A document issued to signal a decrease in accounts receivable, often due to a return or an adjustment.

Accounts Payable

Liabilities or amounts a company owes to creditors or suppliers for goods or services that have been received but not yet paid for.