What is the expected profit of project a and project b

Assignment Help Basic Computer Science
Reference no: EM131752482

1. The manager's utility function for profit is U(p) = 10 ln(p), where p 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:

Probability

Profit outcome

Project A

Profit outcome

Project B

0.05

 $1,000

$14,000

0.10

$8,000

$14,000

0.35

$12,000

$14,000

0.50

$20,000

$14,000

a. What is the expected profit of Project A and Project B?

b. What is the manager's expected utility of profit for Project A and Project B?

Reference no: EM131752482

Questions Cloud

Why we should have cause for concern regarding the issue : Please explain why we should have cause for concern regarding the Bioethical issues facing us in today's modern contemporary society.
Advantages and disadvantages of using divisional profit : Discuss the advantages and disadvantages of using divisional profit as the basis of incentive compensation for division managers compared.
Analyze hooliganism from conflict theorist perspective : Analyze hooliganism from a conflict theorist perspective. Why might hooliganism occur and what can we learn from it?
Determine the amount of the adjusting entry : Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $2,150,000; Allowance for Doubtful Accounts.
What is the expected profit of project a and project b : a. What is the expected profit of Project A and Project B? b. What is the manager's expected utility of profit for Project A and Project B?
Evaluate the primary ethical standards of the accounting : Evaluate the primary ethical standards of the accounting organization's leadership and values which contributed to approval of the accounting issues.
Analyze the impact of any external factor : Analyze the impact of any external factor (i.e., external to the company) such as interest rate or infilation on the company's financial position.
Suppose the market for oranges : Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage.
Discuss the likely reason for difference in tax liabilities : Discuss the likely reason for the difference in tax liabilities arising from the stock redemptions.

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Screen readers can have trouble with the html messages

Some people have their mail clients set to show only text The message may not be formatted properly. Some email clients will reject them if you don't. Screen readers can have trouble with the HTML messages.

  Started the process of deleveraging

Additionally, many households in the U.S. started the process of deleveraging, reducing debt from their balance sheets, and rather using equity when making.

  Design an application to take and process a pizza order

Design an application to take and process a pizza order. The user should be able to make pizza order choices from listboxes, and the application should display the order price.

  Can someone help me with chapter exercise number

Can someone help me with Chapter 1 exercise number 5

  How many iterations will it take to converge to the solution

Suppose CG is applied to a symmetric positive definite linear system Ax = b where the right hand-side vector b happens to be an eigenvector of the matrix A. How many iterations will it take to converge to the solution? Does your answer change if A..

  Example of how you might use it in an application

Describe how the control works and provide an example of how you might use it in an application. Under what circumstances would you use this validation control.

  Find the probability of each group being selected

There are 5 male and 5 female students in the executive council of the Douglas High School honor society. A committee of 4 members is to be selected at random to attend a conference. Find the probability of each group being selected.

  Think about a specific healthcare organization

Think about a specific healthcare organization: Are there any differences for creating an effective delivery system? Who are the important stakeholders in a healthcare delivery system?

  What will the following pseudocode program display

What will the following pseudocode program display

  Find the machining time and metal-removal rate

If the feed per tooth is 0.2 mm/tooth and the cutting speed is 0.75 m/s, find the machining time and metal-removal rate for removing 6 mm from the surface of the part.

  Determine the power input to the compressor

Assuming a mass flow of 2 kg/s and neglecting kinetic and potential energy change, determine the power input to the compressor.

  Write two ordered pairs to represent sales

a) Write two ordered pairs to represent the sales on the days described. b) Find the slope of the line through those ordered pairs c) Write an equation in point-slope form of the line.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd