Estimate the Expected Utility of Two Individuals, a and B

question 45

Essay

Estimate the expected utility of two individuals, A and B, from the investment that has the following possible outcomes:
$\begin{array} { | c | c | c | c | } \hline \text { PROBABILITY } & \text { OUTCOME } & \text { A's UTILITY } & \text { B's UTILITY } \\\hline 0.3 & \$ 10,000 & 10 & 10 \\\hline 0.4 & \$ 30,000 & 30 & 20 \\\hline 0.3 & \$ 80,000 & 80 & 40 \\\hline\end{array}$

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Definitions:

Job Context

The environment, conditions, and characteristics surrounding a specific job, including physical setting, tools used, and social aspects of work.

Workforce Availability

The supply of qualified and interested individuals in the labor market capable of filling job positions within an organization.

Hiring Bonuses

A financial incentive offered by employers to new employees as an attraction strategy to join the company.

Feedback

Information provided back to a person or group about their performance or behavior, intended for guidance and improvement.