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Critical Thinking Questions Case 4-1 in Your Role as a Consultant

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Critical Thinking Questions Case 4-1 In your role as a consultant for people buying new computer systems, you always work hard to stay abreast of the latest RAM guidelines for the various levels of users. Another client used to just use standard application software in the past but with the purchase of a new computer, he expects to start creating Web sites, playing Internet games, and participating in video conferences. Which of the following configurations would be a good match for his new anticipated needs?


Definitions:

Utility Function

A formulation used in economics to depict how different combinations of goods or services yield varying levels of happiness or utility to an individual.

Risk Neutral

A description of an individual or entity that does not show a preference for risk, valuing all investments purely by their expected return without concern for their risk.

Risk Averse

A description of an individual or entity that prefers outcomes with lower uncertainty and is less likely to engage in actions with uncertain outcomes.

Income

The money or earnings received by an individual or organization, often from employment, business, investments, or other sources.

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