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Conditions : Poor Good Excellent Probability 40 % 50 % 10 %

Using Excel , calculate the expected value of each project and identify the preferred project according to this criterion .

Assume that the individual ’ s utility function for profit is U ( X ) = X-0.05X2 . Calculate the expected utility of each project and identify the preferred project according to this criterion .

Is this individual risk adverse , risk neutral , or risk seeking ? Why ?

Froeb et al .’ s Chapter 17 : a ) Individual problems : 17 – 1 and 17 – 4 .

Individual Problem 17-1 : You ’ re the manager of global opportunities for a US manufacture , who is considering expanding sales into Europe . Your market research has

Conditions : Poor Good Excellent Probability 40 % 50 % 10 %

Using Excel , calculate the expected value of each project and identify the preferred project according to this criterion .

Assume that the individual ’ s utility function for profit is U ( X ) = X-0.05X2 . Calculate the expected utility of each project and identify the preferred project according to this criterion .

Is this individual risk adverse , risk neutral , or risk seeking ? Why ?

Froeb et al .’ s Chapter 17 : a ) Individual problems : 17 – 1 and 17 – 4 .

Individual Problem 17-1 : You ’ re the manager of global opportunities for a US manufacture , who is considering expanding sales into Europe . Your market research has