What is the minimum price that the decision maker

Assignment Help Operation Management

Reference no: EM131466791

Suppose that a decision maker’s risk attitude toward monetary gains or losses x given by the utility function u(x) = (10,000 + x)^1/2 Suppose that a decision maker has been given a lottery ticket for free. Suppose that the lottery winning is $500,000, and the chance of winning is one in a thousand. What is the minimum price that the decision maker would be willing to sell the ticket for?

Reference no: EM131466791

Questions Cloud

Write three advantages-disadvantages for each type conveyor : Write three advantages and disadvantages for each type conveyor shown below.

Types of material handling equipment : Differentiate between the following types of material handling equipment.

Use to forecast hr supply and demand with rationale : Discuss the appropriate HR techniques the company can use to forecast HR Supply and Demand with rationale.

How do you minimize the employees resistence : How do you minimize the employees resistence? Where does making "ownership" of the change for the employees a part of the process?

What is the minimum price that the decision maker : What is the minimum price that the decision maker would be willing to sell the ticket for?

Large enough to warrant dealing directly with the paper mill : STAR Co. provides paper to smaller companies whose volumes are not large enough to warrant dealing directly with the paper mill.

Distinguish among these diversification approaches : Distinguish among these diversification approaches.

Models are based on the principle of comparative advantage : Both models are based on the principle of comparative advantage.

How would you describe a market niche : How would you describe a “market niche?

User Account

All Pages