You have graduated from CU and have been offered employment as a business consultant with three...

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You have graduated from CU and have been offered employment as a business consultant with three insurance companies, I, II & III. All jobs have equal non- wage conditions, equal initial duration and are equally enjoyable. You must choose one job only. The job at I pays $40,000, II pays $50,000 and III pays $86,000. You are aware that III wont lead to any work in the future. However, depending on how well you get along with the owner of the insurance company, you may be offered additional work with firm I and firm II. You believe you have a 75% chance of getting along with manager I and if this is the case, you have a 66% chance of receiving an additional contract worth $100,000. You believe you have a 80% chance of getting along with manager II and if so you have a 50% chance of getting an additional contract worth $60,000 and a 50% chance of an additional contract worth $20,000. Your utility function is U(I) = 10.5. Use a decision tree to represent your choice of employment offers under uncertainty? You have graduated from CU and have been offered employment as a business consultant with three insurance companies, I, II & III. All jobs have equal non- wage conditions, equal initial duration and are equally enjoyable. You must choose one job only. The job at I pays $40,000, II pays $50,000 and III pays $86,000. You are aware that III wont lead to any work in the future. However, depending on how well you get along with the owner of the insurance company, you may be offered additional work with firm I and firm II. You believe you have a 75% chance of getting along with manager I and if this is the case, you have a 66% chance of receiving an additional contract worth $100,000. You believe you have a 80% chance of getting along with manager II and if so you have a 50% chance of getting an additional contract worth $60,000 and a 50% chance of an additional contract worth $20,000. Your utility function is U(I) = 10.5. Use a decision tree to represent your choice of employment offers under uncertainty?

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To represent your choice of employment offers under uncertainty we can use a decision tree Heres how ... View the full answer