The Manager's Utility Function for Profit Is U $\pi$ )= 50 $\pi$

question 17

Multiple Choice

The manager's utility function for profit is U $\pi$ ) = 50 $\pi$ ,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: What is the expected profit?

• A)$2,000
• B)$3,000
• C)$4,000
• D)$5,000
• E)none of the above

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