You are attempting to establish the utility that your boss assigns to a payoff of $1,500. You have established that the utlity for a payoff of $0 is zero and the utility for a payoff of $10,000 is one. Your boss has just told you that they would be indifferent between a payoff of $1,500 anda lottery which has a payoff of $10,000 where the probability of losing is 0.4. What is your boss' utility for $1,500? (Round your answer to 1 decimal place.) Utility of $1,500

You are attempting to establish the utility that your boss assigns to a payoff of $1,500. You have established that the utlity for a payoff of $0 is zero and the utility for a payoff of $10,000 is one. Your boss has just told you that they would be indifferent between a payoff of $1,500 anda lottery which has a payoff of $10,000 where the probability of losing is 0.4. What is your boss' utility for $1,500? (Round your answer to 1 decimal place.) Utility of $1,500

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 22P: Three decision makers have assessed utilities for the following decision problem (payoff in...

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