Using the risking-seeking utility function compute and identify the optimal decision option for developing the new food processing. Payoff ($M) Utility A Utility B Utility C -12 0 0 0 -7 0.65 0.19 0.03 -3 0.8 0.33 0.06 0 0.85 0.44 0.15 6 0.94 0.67 0.2 10 0.97 0.81 0.35 15 1 1 1
Using the risking-seeking utility function compute and identify the optimal decision option for developing the new food processing. Payoff ($M) Utility A Utility B Utility C -12 0 0 0 -7 0.65 0.19 0.03 -3 0.8 0.33 0.06 0 0.85 0.44 0.15 6 0.94 0.67 0.2 10 0.97 0.81 0.35 15 1 1 1
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 2: Using the risking-seeking utility function compute and identify the optimal decision option for developing the new food processing.
Payoff ($M) |
Utility A |
Utility B |
Utility C |
-12 |
0 |
0 |
0 |
-7 |
0.65 |
0.19 |
0.03 |
-3 |
0.8 |
0.33 |
0.06 |
0 |
0.85 |
0.44 |
0.15 |
6 |
0.94 |
0.67 |
0.2 |
10 |
0.97 |
0.81 |
0.35 |
15 |
1 |
1 |
1 |
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