If Ann's Utility Function Is U = W⁰

question 94

Multiple Choice

If Ann's utility function is U = W^0.5,and she invests in a business which can yield $6,400 with probability 1/5,and $3600 with probability 4/5,then her expected utility is

• A)80.
• B)76.
• C)64.
• D)60.

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Definitions:

Workforce Reduction

Strategies or actions taken by an organization to decrease its number of employees, commonly through layoffs, to reduce costs or adjust to market conditions.

Voluntary Severance Packages

Financial incentives offered by employers to encourage employees to voluntarily resign, often used in workforce downsizing scenarios.

Downsizing Strategy

Strategy to improve an organization's efficiency by reducing the workforce, redesigning the work, or changing the systems of the organization.

Senior Management

The highest level of management within an organization, responsible for strategic decision-making and overall leadership.