# In this chapter a decision tree was developed for John Thompson (Figure for the complete decision tree

## Question:

U (– $190,000) = 0, U (– $180,000) = 0.05,

U (– $30,000) = 0.10, U (– $20,000) = 0.15,

U (– $10,000) = 0.2, U ($0) = 0.3,

U ($90,000) = 0.5, U (– $100,000) = 0.6,

U ($190,000) = 0.95 and U ($200,000) = 1.0.

If John maximizes his expected utility, does his decision change?

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**Related Book For**

## Quantitative Analysis for Management

**ISBN:** 978-0132149112

11th Edition

**Authors:** Barry render, Ralph m. stair, Michael e. Hanna