Question: Hello please answer the question attached in the image. 1) A firm has three opportunities to invest. All payoffs are in thousands a. Using the
Hello please answer the question attached in the image.
1) A firm has three opportunities to invest. All payoffs are in thousands
a. Using the expected value approach, which decision is preferred? b. For the lottery having a payoff of $100, 000 with probability p and $0 with probability (1- p), two decision makers expressed the following indifference probabilities. Find the most preferred decision for each decision maker using the expected utility approach.
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