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The Manager's Utility Function for Profit Is U π\pi )= 10 Ln

question 51

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The manager's utility function for profit is U π\pi ) = 10 ln π\pi ) ,where π\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:  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:   What is the expected profit? A) $12,000 B) $13,000 C) $14,000 D) $15,000 E) none of the above What is the expected profit?

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