How much will his long term average satisfaction be

Assignment Help Operation Management

Reference no: EM1384486

Steve is a rational person whose satisfaction or preference for various amounts of money can be expressed as a function U(x)=(x/100)62, where x is in $. How much Satisifaction does $20 bring? If we limit the range of U(x) between 0 1.0, then we can use this function represent steve's utility What is the shape of his utility function (Concave, convex, straight line, none of these) What does this graph show about steve's incremental satifaction? (Increases with increasing x, decreases with increasing x, does not change with x, none of these) The shape of Steve's utility function shows that he is willing to accept more risk than a risk-neutral person. (true or False) Steve is considering a lottery which the payoff of $80 40$ of the time and a $10 60% of the time. If steve plays the lottery repeatedly, how much will his long term average satisfaction be? For Steve, what amount (in nearest whole $) would give him the same satifaction equal to the previous question?

Reference no: EM1384486

Questions Cloud

Find which species was more numerous : Mark-recapture Largemouth bass data from the Des Plaines River. Use these information, estimate the density (number/hectare) of each size class plus the overall density.

Determine how you could apply lessons learned from flight : Determine how you could apply lessons learned from the Flight 001 video to increase motivation at your current (or future) place of employment.

Determine which approach will yield the best results : Compare and contrast your process with the one which Palm Desert used. Determine which approach will yield the best results consistently in the long-run.

Significant questions software installed by cable personnel : Interesting post on the computer discussion site (Slashdot) raises some significant questions about software installed by cable personnel.

How much will his long term average satisfaction be : how much will his long term average satisfaction be? For Steve, what amount (in nearest whole $) would give him the same satifaction equal to the previous question?

Single polypeptide separated by sds-page : Four proteins, each having a single polypeptide, are separated by SDS-PAGE: human cytochrome c , human serum albumin, bovine myoglobin.

Describe a job which is usually done by an individual : describe a job which is usually done by an individual, which you believe would be made better by having people work in teams, elucidate why.

Metal works considering the of a new line of products : An engineer at the Metal works is considering the introduction of a new line of products. In order to produce the new line, the company needs either a major or minor renovation of the current platn

Use of label theory : In brief describe learning theory. Critically discuss briefly the use of label theory to explain juvenile delinquency. What are the racial implications of the theory?

User Account

All Pages