Question: An independent electronics store is contemplating either opening another store or expanding its existing location. The payoff table for these two decisions is: Peter, the

An independent electronics store is contemplating either opening another store or expanding its existing location. The payoff table for these two decisions is: Peter, the owner of the store, has calculated the indifference probability for the lottery having a payoff of $180,000 with probability p and $60,000 with probability (1p) with the following sure amounts as follows: a) Suppose Peter has defined the utility of $60,000 to be 0 and the utility of $180,000 to be 100 . What would be the utility values for $30,000,$15,000, and $90,000 based on the indifference probabilities? b) Suppose P(s1)=.4,P(s2)=.3, and P(s3)=.3. Which decision should Peter make? Compare with the decision using the expected value approach. Is Peter a risk taker or is he risk averse

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