# Question

Consider again the bankâ€™s customer loan decision problem in Problem 51. Suppose now that the bankâ€™s utility function of profit x (in dollars) is U(x) = 1 â€“ e-x/500000. Find the strategy that maximizes the bankâ€™s expected utility in this case.
How does this optimal strategy compare to the optimal decision with an EMV criterion? Explain any difference between the two optimal strategies.

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• CreatedApril 01, 2015
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