In the risky venture example, the more risky alternative, in spite of its dominating EMV, is not

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In the risky venture example, the more risky alternative, in spite of its dominating EMV, is not preferred by a decision maker with a risk tolerance of $1.92 million. Now suppose everything stays the same except for the best monetary outcome of the more risky alternative (the value in cell D14). How much larger must this value be for the decision maker to prefer the more risky alternative? What is the corresponding EMV at that point?

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Data Analysis and Decision Making

ISBN: 978-0538476126

4th edition

Authors: Christian Albright, Wayne Winston, Christopher Zappe

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